CATEGORIES | Debt | Equity | Financial Advisory | Investments | Multifamily | Student Housing
FIDES Investment, LLC (“FIDES”) announces the sale of The Isles apartments, two vintage rehab properties totaling 85 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 $161,000/unit. The average property level return equated to a 19% IRR and a 1.7x multiple. “Like most of the other properties purchased in this portfolio, we improved unit interiors with a heavy emphasis on upgrading the kitchens. The properties were rebranded as an affordable ‘upgraded vintage style’ apartment that was not widely available in the Uptown market at the time of our acquisition. Approximately 40% of the apartment units were renovated along with common areas which translated into a total revenue increase of approximately 40% from takeover to disposition. Monthly parking charges were increased by 70% during the same timeframe. Unlike most of the competition in this submarket, Isles contains 50% two bedroom units and 88 off-street parking spaces which provided a strong competitive advantage and was instrumental in driving investment performance,” said Gregg Handrich of FIDES. FIDES oversaw the acquisition, renovation, asset management and sale process.