Multifamily Properties

Case Studies - The Triplets

Property Overview

In December of 2013, Jevan purchased 3 properties located in Austin, Texas. The 3 properties (the “Triplets”), were purchased for a combined total of approximately $21 million.

Premise

The previous owners were in the process of renovating the properties and had updated approximately 50% of the units. We saw the opportunity to purchase well maintained assets in Austin, which was one of the few markets across the country that continued to expand through the Great Recession. Our business plan was to continue the unit renovations, as well as enhance the curb appeal of the Triplets.

We were able to perform our enhancements to the Triplets quickly, and as a result increased revenues at 3 properties by over $450,000 in 12 months time. Over the same time period, we were able to reduce overall expenses across the 3 properties by over $246,000, which, when utilizing a 7% discount rate, resulted in us creating over $10 million in value for the Triplets.

Based upon the strong performance of the Triplets of the overall macro conditions of the Austin marketplace, we began to explore a possible sale of the Triplets In the summer of 2016. Despite having our business plan calling for a five year hold period, we received an offer of $38.3 million and on October 27th, 2016, we completed the sale of the Triplets.

Triplets Overview
Amor Feliz Vida
Purchase Price $5,900,000 $5,800,000 $8,525,000
Sales Price $11,800,000 $11,400,000 $15,150,000
Project Level Profit $3,674,064 $3,694,056 $3,629,507
Project Level IRR 57.03% 42.05% 32.62%