Sandpiper Apartments

Average Cash: 7% annual rate

IRR: 15%

Number Of Units: 113 State: Alabama

Purchase Date: September 2011

Sold Date: Still Operating

Sandpiper Apartments is a C class property, located in a B class area in Homewood, Alabama, named one of the top 50 most desirable places to live in the country. The property was purchased with for well under market value after being foreclosed by the lender. Initial funding for the purchase was through a debt/equity hybrid from a single investor. The property had deferred maintenance issues and was operating at around break-even at the time of acquisition. A multi-faceted repositioning strategy to renovate the property and increase revenues and cash flows was executed immediately. The property was fully stabilized and returned to profitability within 18 months of purchase. Within 20 months of acquisition the property was refinanced with a low-interest, long-term loan, returning 80% of the original capital to our investor. We continue to operate the property for cash flows and will ultimately sell the property to realize capital appreciation.