Multifamily Deal for Accredited Investors
Investment Info:
Large multi-family (5+ units) commercial investment investment.
Purchase price: $36,000,000
Cash invested: $6,000,000
Sale price: $48,800,000
In March of 2015 Bridgeview Real Estate started development on a 330-unit multifamily community named The Grayson Apartments in Spring, TX, a suburb of Houston. Project costs, including the construction budget and fees, totaled $36.5 million (~$110,600 per unit).
The Grayson was sold on April 24th, 2019, for $48.8 million (~$147,900 per unit). BV's investors realized an internal rate of return ("IRR") of 18.65% and a cash-on-cash return of 2.01x over the 49-month investment horizon.
What made you interested in investing in this type of deal?
The property is located just a few miles south of the Exxon Mobil campus that was just finishing out at the time.
How did you finance this deal?
Senior Debt and equity from a PE shop and individual accredited investors
What was the outcome?
A 2x return for investors in 49 months
