Creative Realty Partners acquired the Silversmith Creek, a 140 unit apartment complex in Jacksonville, FL, in June of 2016.
A $186,000 rehab budget (included in the initial acquisition financing) was allocated for interior, exterior, and amenity improvements.
The capital improvements were completed within the first 12 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 95%.
At disposition, the property was fully marketed and generated a sales profit of $3,260,000 in excess of its acquisition price, representing a 200% ROI. The property sold in March of 2018.
Including the monthly Cash Flow After Debt Service, the total, eighteen month cash-on-cash return on the project was in excess of 233%, making the IRR above 72%.