Project type: Investment, Workforce Housing
Project value: > $14mm
Project size: 107,690 square feet
Capital Growth Buchalter invested with a large multi-family value-add acquisitions company to help bring new life—both literally and financially–to The Life at Arbor Creek. Situated amidst a strong demographic base in one of the country’s fastest growing employment regions, the 117-unit multifamily development is located near the intersection of two major highways and within walking distance of a suburban downtown dining and shopping district.
The historically stable, cash flowing property had 94% occupancy in a submarket that averaged 95% in the 36 months prior to CGB’s investment. However, the property had rents that were 10 – 15% below market rates. CGB became a limited liability partner with a Northeastern real estate-focused company to complete various improvements aimed at repositioning the property so it could now command rents that are 10+% above market average.
Highlights
- 117 1- to 3-bedroom apartments with on-premise amenities included a swimming pool, laundry, playground and sports field
- Strong financial metrics including compelling annual cash-on-cash return, internal rate of return and equity multiple
