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Realized Deal : Villas at LeBlanc Park

Sponsored By Aldwin Apartments

Risk Profile
Value-Add
Amount Invested
$187,000
Targeted IRR
19.6%
Actual IRR*
16.4%
Targeted Equity Multiple
1.73x
Actual Equity Multiple*
1.4x
Targeted Hold Period
4.3 years
Actual Hold Period
2.3 years

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.

Project Timeline

Strong Start

March 2016

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.

Performance Continues

March 2017

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.

Successful Sale

July 2017

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).

Final Outcome

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 fees

This report contains explanations of a series of events associated with Aldwin Apartments’ Villas at LeBlanc Park offering that resulted in an approximate 40% (net of fees) absolute return on original equity 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.

CrowdStreet makes no representation or warranty, express or implied, in relation to the fairness, accuracy, correctness, completeness, or reliability of the information contained in this report. CrowdStreet does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it.

This communication should not be construed nor is it intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Furthermore, this communication does not establish an attorney-client relationship or constitute legal advice.