CATEGORIES | Debt | Equity | Financial Advisory | Investments | Multifamily | Student Housing
FIDES Investment, LLC (“FIDES”) announces the sale of Belvedere and Martinique, two vintage rehab properties totaling 51 units located in the heart of Uptown Minneapolis. FIDES joint ventured with CPM and a privately held investment firm. The properties were purchased in September 2014. The sale price equated to $140,098/unit. The average property level return equated to a 21% IRR and a 1.7x multiple. “Our strategy was to improve unit interiors, common areas and rebrand both properties to offer a mid-priced ‘upgraded vintage style’ floor plan that was not available in the Uptown market. Approximately 35% of the apartment units were renovated along with common areas which translated into a total revenue increase of approximately 33% from takeover to disposition. One key element of the renovation was adding vintage canopies for both building entryways that had once been a key element of the facade but had been removed by a previous owner. This significantly enhanced the curb appeal of the buildings and really added a finishing touch to the upgrades. The A+ location of these properties along with the unique vintage product offering were key components in the success of this investment,” said Gregg Handrich of FIDES. FIDES oversaw the acquisition, renovation, asset management and sale process.