The Palms at Ortega

LOCATION: Jacksonville, FL

PURCHASE: $10.75M

IRR: 17.6%

EQUITY MULTIPLE: 1.88x

We purchased The Palms at Ortega, a 152-unit property in Jacksonville, FL, in 2018 for $10.75M. We obtained acquisition financing for $7.9M at an interest rate of 4.85%. To accelerate our repositioning, we installed new management and rebranded the property with a new name. Several exterior capital projects were initiated, including refreshed lighting, enhanced landscaping, fresh paint, new mailboxes, a dog park and an updated business center, gym, clubhouse and playground.

With a significant increase in NOI in 2020, we refinanced the existing loan generating proceeds of $11.2M, returning approximately 30% of the investor’s equity. The new loan carried an interest rate of 4.08%. In July of 2022, with rents soaring in the Jacksonville, Florida market, we refinanced again, generating $16.3M, returning investors 130% of their original investment.

Cumulatively, investors have received a 1.88x return on their investment and continue to receive quarterly distributions based on their ownership percentage. The property is currently valued at $28M.

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