In April 2015, Aldwin Apartments (“Aldwin”) launched an offering for a 168-unit, well maintained Class B property located in the desirable Hulen Bend sub-market of Fort Worth, TX.
Aldwin had acquired the property in July 2014 and offered CrowdStreet Marketplace investors an opportunity to acquire membership interests at the original basis. The business plan contemplated investing approximately $571,000 in the first 24 months mainly on interior upgrades, improved landscaping and enhancements to the pool area. Overall, the renovation project would be mostly concentrated on updating unit interiors in an effort to raise rental rates and attract a higher paying tenant base. Aldwin projected that a successful implementation of this strategy could increase net operating income by 13% during the first two years of ownership.
Average occupancy for the first quarter in 2016 increased to 96% and net operating income was slightly ahead of budget. Aldwin continued making regular distributions and issued a Q1 2016 distribution equal to a 7.8% annualized return on equity invested.
Average occupancy for Q1 2017 was 95% and the bottom line remained healthy due to strong market rents. Distributions continued and after the Q1 2017 distribution, nearly 16% of CrowdStreet investor capital had already been returned. To date, Aldwin had spent approximately 65% of the original renovation budget.
Aldwin informed investors that it had completed a successful sale of the property after an approximate three-year hold (from when Aldwin first acquired the property).
Good business plan execution and favorable market conditions created the opportunity for Aldwin to successfully exit the investment, achieving strong returns for investors consistent with original expectations.
*Net of the most onerous fees charged to clients of CrowdStreet Advisors, LLC, our registered investment advisor subsidiary; an investor’s actual returns on a realized investment may differ.
This report contains explanations of a series of events associated with the Villas at LeBlanc Park offering that resulted in an approximate 16.4% (net of most onerous fees) IRR to investors (including those from the CrowdStreet Marketplace). Certain aspects of the report such as dates of major events and the final outcome are easily verifiable while others, particularly underlying reasons behind the sponsor’s business plan execution, are not.
The report partially relies upon the sponsor’s explanations, the information contained within sponsor-produced quarterly reports, and conference calls. This analysis is not an assertion of independently verified facts but, rather, is for informational purposes only, to convey CrowdStreet’s understanding of what transpired.
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