Creative Realty Partners acquired the The Oaks, a 148 unit apartment complex in Balch Springs, TX, in December of 2014.
A $954,600 rehab budget (included in the initial acquisition financing) was allocated for interior, exterior, and amenity improvements.
The capital improvements were completed within the first 18 months of ownership and facilitated raising rents to market, tapering expenses, and increasing the existing utility bill-back program, which ultimately increased the Net Operating Income by 66%.
At disposition, the property was fully marketed and generated a sales profit of $5,350,000 in excess of its acquisition price, representing a 320% ROI. The property sold in June of 2018.
Including the monthly Cash Flow After Debt Service, the total, cash-on-cash return on the project was in excess of 339%, making the IRR above 42%.