- May 28, 2013
(88 units) – Des Moines, WA
RSRC acquired an 88-unit property built in 1988 in the Seattle suburb of Des Moines, Washington. The property, under former TIC ownership, was underperforming it’s peers in the marketplace by approximately 10%. RSRC viewed this acquisition as an opportunity to improve management and make minor renovations to the property to achieve the current rent roll and additional modest rent growth over the course of the investment hold. Through RSRC’s network of small brokers, we identified this opportunity after a failed marketing attempt at a higher price and time running out on the owners before their financing needed to be paid off. At a purchase price of $81,818/unit, the acquisition was discounted to replacement costs, as well as below comparable sales in the market. The anticipated hold for the project is five years with a projected IRR of 18.6% and a current yield component of 10% – 11%. In the 12 months since the acquisition, RSRC/Calibrate has grown rents by 9% and the property is generating a 10% cash yield.
|Project Capitalization / Loan (LTV):||$7,200,000 / $5,200,000 (74% Loan to Cost)|
|Structure:||JV between RSRC and Origin Capital Fund|
|Acquisition Date:||Feb – 2012|