Austin, TX Portfolio
Jevan performed enhancements to The Triplets that increased revenues at the three properties by over $450,000 in just 12 months.
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.
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.
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