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(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.