Purchasing the property in the fall of 2016, we secured a timely entrance into a high-growth tertiary market. The successful implementation of our business plan, exceeding proforma rents on renovated units, and strong organic rent growth all played a part in drastically increasing NOI throughout our ownership of the asset.
In the summer of 2018, 20 months after acquisition, we refinanced our initial floating rate loan into a 7-year fixed rate loan that resulted in the return of 30% of investor capital.
Three years later in May 2021, after further NOI growth, we successfully added a supplemental loan which returned additional investor capital. In total, we’ve returned 118% of investor capital. Our investors’ cash-on-cash returns going forward are “infinite,” as all investor capital has been returned via refinance.
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