Success Stories

SOLARIS RANCH

Location: Ft.Worth, TX
Asset Type: Class A multifamily – 80 units
Ownership period: 2014-2017
Return on Equity: 75.4%
Annualized return on Equity: 28.1%
Increase in value: 51.1%
Increase in NOI: 54.1%

Solaris Ranch was the eighth asset acquired as part of the partners’ current portfolio and the third to be sold. The partners intended to hold Solaris Ranch for a 5 year term to fully maximize value. We determined, however, that we would be able to exceed our 5 year sales price within 3 years by nearly 7% given the quality of this property and the value we had added. Through an open marketing effort we obtained an offer from a highly motivated buyer. The result was a net return to our investors of 75.4% on equity invested in less than 3 years – the equivalent of 28.1% a year and an IRR of 24.2%.

PARK VILLAGE

Location: Dallas, TX
Asset Type: Class B multifamily – 350 units
Ownership period: 2014-2018
Return on Equity: 317.5%
Annualized return on Equity: 69.2%
Increase in value: 218.5%
Increase in NOI: 38.6%

As of the date of Park Village’s sale, the partners had sold six of the first eight properties purchased in this portfolio. The combination of strengthening south Dallas location and our increase of Park Village’s NOI by nearly 40% in 4.5 years resulted in a return substantially in excess of our projections. The result was a net return to our investors of 317.5% on equity invested – the equivalent of 69.2% a year and an IRR of 39.1%.

THE MINT TOWNHOMES

LOCATION St. Louis, MO
ASSET TYPE Class C multifamily – 156 units
Ownership period: 2018-2022
Return on Equity: 111.9%
Annualized return on Equity: 27.8%
Increase in value: 116.8%
Increase in Collected Income: 53.4%
Named Windsor Townhomes at the time of purchase, the property had extensive deferred maintenance issues and a lackluster operational history. Through a rebranding and the extensive upgrade of the property’s physical plant coupled with the streamlining of expenses, we were able to increase collected income by over 50% over our term of ownership. Because of such efforts, significant value was added to the property to ultimately provide investors with a net return of 111.9%, or 27.8% annualized; 30.4% greater than our projected return.

INDIGO APARTMENTS

LOCATION Dallas, TX
ASSET TYPE Class B multifamily – 120 units
Ownership period: 2017-2021
Return on Equity: 113.5%
Annualized return on Equity: 24.9%
Increase in value: 99.2%
Increase in NOI: 62%
Our fifteenth asset to be taken full-cycle, Indigo suffered from former ownership’s neglect of both the property and its residents at the time of purchase. It took most of our ownership term to stabilize Indigo as we worked through COVID-related impacts and challenging resident issues. Through upgrading both unit interiors and exteriors, maintenance of its general condition, and a complete rebranding, we were able to significantly increase income during the time we owned the property. Through such efforts, the asset doubled its value under our 4.5 years of ownership, exceeding our projected net investor return by 14% about half a year sooner than targeted at the time of acquisition.

WATERFORD SQUARE APARTMENTS

LOCATION St. Louis, MO
ASSET TYPE Class C multifamily – 160 units
Ownership period: 2017-2022
Return on Equity: 205.1%
Annualized return on Equity: 32.6%
Increase in value: 62.9%
Increase in Collected Income: 26.6%

A stabilized asset with a long history of steady rent growth and purchased from the original developer, Waterford Square did not require unit upgrades to capture incremental increases in rent. Through maintaining its good physical condition, we were able to significantly increase income during the time we owned the property. As the fourteenth asset taken full-cycle and our first investment in St. Louis, Waterford Square provided investors with a total return of 205.1%, 63% greater than our projected net investor return for this asset.

Hilltop Village

LOCATION Kansas City, MO
ASSET TYPE Class B multifamily – 124 units
Ownership period: 2016-2021
Return on Equity: 193.3%
Annualized return on Equity: 33.7%
Increase in value: 86.2%
Increase in Collected Income: 38.7%

Hilltop Village was the twelfth asset to be taken full-cycle by the partners. The first investment in Kansas City, Hilltop Village had extensive deferred maintenance issues and a lackluster operational history at purchase. Through substantial renovation and the streamlining of expenses, Hilltop Village’s NOI increased significantly under our ownership, resulting in a return substantially in excess of our projections. Many of this assets’ investors exchanged into Hilltop from the sale of Shannon Hills in Colorado Springs. With the sale, those investors earned a return of approximately 596.3% on their initial Shannon Hills investment over an 8.5-year investment period.

Serendipity

Location: Dallas, TX
Asset Type: Class C multifamily – 343 units
Ownership period: 2014-2017
Return on Equity: 48.6%
Annualized return on Equity: 16.3%
Increase in value: 44.5%
Increase in NOI: 34.6%

Serendipity’s financial performance suffered in the short term. However, as the more qualified tenancy grew, rent collections became significantly more stable, and at higher rent levels. In the final few months of ownership the property was 97% leased or higher. Our increase of Serendipity’s NOI by 35% in a period of 3 years resulted in a sale that provided proceeds substantially in excess of our projections – a net return to our investors of 48.6% (16.3% a year) and an IRR of 14.3%.

Fireside

Location: Colorado Springs, CO
Asset Type: Class C multifamily – 108 units
Ownership period: 2012-2018
Return on Equity: 400.9%
Annualized return on Equity: 61.7%
Increase in value: 344%
Increase in NOI: 59.3%

PREP acquired Fireside in February 2012 for $3.95MM. We finished a refinance in December 2014, returning 94.9% of investors’ cash invested. Since purchase we increased NOI by 59.3%. We sold Fireside for $13.6MM, 344% more than paid. The sale provided a net investor return of 400.9%, an annualized return of 61.7% and a net IRR of 34.3%. PREP offered a 1031 exchange property for investors.

Fairway View

Location: Colorado Springs, CO
Asset Type: Class C multifamily – 116 units
Ownership period: 2013-2017
Return on Equity: 112.1%
Annualized return on Equity: 24.8%
Increase in value: 76.0%
Increase in NOI: 32.2%

Fairway View was the second asset acquired as part of the partners’ current portfolio, the first to be recapitalized through a refinance completed 17 months after acquisition (returning 41% of invested equity), and the fifth to be sold. In accordance with our business plan, the partners will recapitalize assets through advantageous refinance programs or sell when prudent. We had increased Fairway View’s NOI to a level at which we could exceed our original net investors’ returns targets. Including cash flow and refinance distributions up to the date of the sale, the result was a net return to our investors of 112.1% on equity invested in 4.5 years – the equivalent of 24.8% a year and an IRR of 21.8%.

Avalon Valley

Location: Colorado Springs, CO
Asset Type: Class C multifamily – 105 units
Ownership period: 2013-2019
Return on Equity: 219.3%
Annualized return on Equity: 42.2%
Increase in value: 307%
Increase in NOI: 59.3%

PREP acquired Avalon in November 2013 for $3.3MM. We refinanced the property in April 2016, returning 93.6% of investors’ cash invested. Since purchase we increased NOI by 59.3%. We sold Avalon for $10.15MM, more than three times what we paid. The sale provided a net investor return of 219.3% – an annualized return of 42.4% and a net IRR of 33.3%. PREP offered a 1031 exchange property for investors.

Shannon Hills

Location: Colorado Springs, CO
Asset Type: Class C multifamily – 70 units
Ownership period: 2013-2016
Return on Equity: 116.2%
Annualized return on Equity: 39.6%
Increase in value: 68%
Increase in NOI: 50%

Shannon Hills was the second asset acquired as part of the partners’ current portfolio and the first to be sold. As of the date of the sale, the partners had recapitalized all three of the first three assets purchased in this portfolio since its inception in 2012. The partners intended to hold Shannon Hills for a five to seven year term to fully maximize value. Under certain circumstances, however, we consider sales of assets prior to the end of our targeted ownership term. Through exhaustive market research, we determined that there was an opportunity to achieve our returns objective over two years before our target. After a short marketing period we obtained an offer from a highly motivated buyer. The result was a net return to our investors of 116.2% on equity invested in three years – the equivalent of 39.6% a year and an IRR of 31.3%.

Arbor Vista

Location: Dallas, TX
Asset Type: Class B multifamily – 196 units
Ownership period: 2013-2017
Return on Equity: 107.1%
Annualized return on Equity: 28.6%
Increase in value: 76.2%
Increase in NOI: 38.6%

Arbor Vista was the fourth asset acquired as part of the partners’ current portfolio and the fourth to be sold. As of the date of Arbor Vista’s sale, the partners had recapitalized all three of the first three assets purchased in this portfolio through refinances since its inception in 2012. The combination of location in north Dallas and our increase of Arbor Vista’s NOI in a period of less than 4 years resulted in a return if sold substantially in excess of our projections. The result was a net return to our investors of 107.1% on equity invested in under 4 years – the equivalent of 28.6% a year and an IRR of 22.8%.