Realized Gross Returns
IRR19.4%
|
Equity Multiple1.7x
|
Hold Period3.1 Years
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|
Acquisition Date: June 2017 |
At a glance
Status: Realized |
Sale Date: August 2020 |
ESRE Approach
We closed on the property, repaired the roof, and improved the exterior via tuckpointing and repainted the decorative exterior. This enabled us to get market rent for the apartments and find a business to lease the storefront. Demand for the area continued to improve and we sold the property after 3 years. 2 years after the acquisition we executed a cash-out refinance of the property of 1.6 times our initial equity.
We closed on the property, repaired the roof, and improved the exterior via tuckpointing and repainted the decorative exterior. This enabled us to get market rent for the apartments and find a business to lease the storefront. Demand for the area continued to improve and we sold the property after 3 years. 2 years after the acquisition we executed a cash-out refinance of the property of 1.6 times our initial equity.
Background
Chicago’s 606 trail and on the border of Humboldt Park and Logan Square. We chose this neighborhood because we believed it was in the path of development. This specific property was undervalued because it had a leaking roof that led to the residents having below market rent and the a vacant storefront. We acquired the property after it was listed on the multiple listing service. The property had been under contract twice, but the deals had fallen apart because the buyers were unable to finance the required deferred maintenance.
Chicago’s 606 trail and on the border of Humboldt Park and Logan Square. We chose this neighborhood because we believed it was in the path of development. This specific property was undervalued because it had a leaking roof that led to the residents having below market rent and the a vacant storefront. We acquired the property after it was listed on the multiple listing service. The property had been under contract twice, but the deals had fallen apart because the buyers were unable to finance the required deferred maintenance.
WHY ESRE
1Midwest Undervalued Markets
Targeting growing Midwest markets with favorable demographic trends and less competition but more favorable purchase multiples than other US Markets |
2Data Driven Strategy
Proprietary data science algorithm to forecast market rents and inform our target market and underwriting processes |
3Management & Operational Experience
Leverage proven experience managing and rehabbing multifamily properties to mitigate risks and scale operations |