In December of 2013, Jevan purchased three properties located in Austin, Texas. The three properties (the “Triplets”), were purchased for a combined total of approximately $21 million.
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 the three properties by over $450,000 in 12 months' time. Over the same time period, we were able to reduce overall expenses across the three 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 and 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 27, 2016, we completed the sale of the Triplets.
|Project Level Profit||$3,674,064||$3,694,056||$3,629,507|
|Project Level IRR||57.03%||42.05%||32.62%|