Northern Cross Apartments

Sep 23, 2018

Date of ownership:  Nov 2018

Date of sale: Still owned

Northern cross apartments is an investment into a higher end “institutional quality” asset and was done to diversity across asset classes.  This was a bigger deal in terms of number of units and investor equity required.  The opportunity for large gains is present which makes this a great opportunity. Further the stabilized asset, exit strategy and property fits nicely into the overall portfolio.

Property Information

Size:  398 Units

Number of buildings:  19

Year Built:  2001

Business Plan:

Renovate Units – $7.500 / unit upgrade

Enhance exterior and common areas

Improve property Management


Purchase Price:  $48,600,000

Equity Raised:  $21,500,000

Projected Returns:

Average Cash on Cash Return:  8.6%

Average annual return: 21.1% (including capital gains)

Total Investor Return:  150%

Total Investor IRR:  16.1%

Insert into table:

Year 1: 8.0%

Year 2: 8.2%

Year 3: 8.6%

Year 4: 8.8%

Year 5: 9.3%

Year 6: 8.3%

Year 7:  96.6%

Capital Gains:  32%

Exit Strategy:

7 year hold time.

Have 20 year mortgage for flexibility on exit timing