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%.