Multifamily Deal for Accredited Investors

[Rob Anderson]

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