The Investment

• Nationwide search identified Phoenix, AZ as target location for internal portfolio investment.
• Three month analysis of local properties resulted in acquisition of two run-down apartment complexes.
• Purchased at 50% of replacement cost with non-recourse financing and a construction line of credit.

The Return

• After renovation, units rented at $125 below market rate.
• Upon lease-up, complexes had a 1.2% vacancy rate vs. 20% area average, and yielded positive cash flow.
• While current area rents are up $100/month with 6% vacancy rate, the acquired properties’ rents are up $175/month (now only $50 below market), maintaining vacancy rate of under 2% and positive cash flow.

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