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(163 units + 8,000 sf of retail) – Tacoma, WA
RSRC acquired a 163-unit bank-owned distressed apartment development in downtown Tacoma, Washington, that was approximately 60% completed. RSRC completed the $12 million construction on of the project on budget over an 11-month period and completed the lease-up of the property. The property was initially developed in 2007-2008 and stalled out after an equity investment of $5 million plus a loan of $19 million had been drawn down by the original developer. After pursuing the project for approximately one year and attempting to purchase the note, the lender foreclosed out the original developer and RSRC purchased the project for $8.5 million. The anticipated hold for the project was three to four years with an anticipated project IRR of 19%. Project capitalization was $21.8 million and stabilized cap rate on the project was expected to be 8.0%. There was a $12.3 million construction loan on the project funded by Wells Fargo. RSRC sold their interest of the asset in January 2015 to an Equity Partner which netted the RSRC investors with a 2x multiple over a 44-month period.