Pines of Lanier

Average Cash: 9% annual rate

IRR: 16%+

Number Of Units: 157 State: Georgia

Purchase Date: November 2014

Sold Date: Still Operating

The Pines of Lanier Apartments is a C+ class property in the C+ class area of Gainesville, Georgia. The property had been well maintained and was in excellent condition until it was taken back by the lender as part of a larger portfolio that went into default. The property was re-stabilized by a special servicer and most of the deferred maintenance issues were addressed. We purchased the property opportunistically, at a significant discount to market at auction, because we had done the due diligence up front, met the stringent requirements of the auction and were able to bid successfully when it became apparent that the property would sell at a favorable price. We funded the purchase with private investor notes refinanced those notes with a Fannie Mae within 90 days of purchase. The property currently pays quarterly cash distributions at a 10% annual rate. We plan to operate the property for cash flows and to ultimately sell the property to realize capital appreciation.