CATEGORIES | Debt | Equity | Financial Advisory | Investments | Multifamily | Student Housing
FIDES Investment, LLC (“FIDES”) announces the sale of Geneva Park, a 56-unit apartment building located in Geneva, IL. FIDES joint ventured with a privately held investment firm that bought the failed condominium conversion in October 2013 in a short sale transaction simultaneously with the individual purchase of the previously sold condominiums. The recent sale price was just under $115,000/unit. The property level return equated to a 19% IRR and a 1.7x multiple. “Our strategy was to convert the failed condominiums back to apartments and significantly renovate the property and improve onsite management. Within the first year of ownership, we encountered 75% unit turnover and undertook a full-scale renovation program. Approximately 60% of the apartment units were renovated along with common areas and amenities at an approximate cost of $15,000/unit, which translated into significant rental rate increases. The end result was top-line revenue growth of approximately 40% from takeover to disposition. Although the transformation of the property from a failed Class C condominium conversion to a Class B apartment asset was time consuming and at times challenging, it provided our investors with an attractive risk adjusted return,” said Gregg Handrich of FIDES. FIDES oversaw the acquisition, renovation, asset management and sale process.