- May 28, 2013
(66 units) – Redmond, WA
RSRC acquired a 66-unit bank owned distressed condo development in downtown Redmond, Washington that was approximately 75% complete. RSRC completed the $2.6 million construction of the project over an eight-month period and successfully leased the property up within the first year of the project. RSRC refinanced the property with permanent debt at a rate of 4.3% with prepayment flexibility upon stabilization. Sponsorship returned approximately 30% of principal investment to investors as part of the refinancing. The anticipated hold for the project was five years with an anticipated project IRR of 18%. Project capitalization is $11 million. RSRC sold the project to Essex Property Trust for $14.15 million and realized a 32% IRR and 1.5x equity multiple over 18 months.
|Project Capitalization / LTV:||$10,850,000 / $6,500,000 (60% Loan to Cost)|
|Structure:||JV between RSRC and Zell Credit Opportunities|
|Acquisition Date:||June – 2010|