Core Plus
Villas on Fir
Villas on Fir is a great example of Gray Capital’s ability to find opportunities for cash flow and to exploit market inefficiencies with Core Plus Assets in Midwest tertiary markets. The original business plan for the project included burning off concessions, reducing over market expenses and bring rents closer to comparable properties in the area.
Not only were those objectives complete within the first year of ownership, the property has maintained an average occupancy of 98%, and rents outpacing the market. In the first year of operations, Gray Capital exceeded pro-forma NOI by 13.87% and distributed 13% cash-on-cash to investors. This has been achieved through operational efficiencies and hands-on management.
Since acquisition, NOI has grown by 100.7%.
Projected values for the asset are $20-30m in excess of the original purchase price.
The property is currently financed with a HUD 223(f) loan that includes a 35 year term amortized over 35 years, with an interest rate of 2.4%.
Villas on Fir continues to be held in the Gray Capital portfolio as a long term position.
INFORMATION
Strategy
Core Plus
Year Built
2018
Hold Period
10 Years
Market
Granger, IN (South Bend/Mishawaka Area)
Number of Units
290
IRR
25+% (Projected)
Cash on Cash
13%
Purchase Price
$61,250,000.00
Value-Add
Autumn Trails
Autumn Trails is a 165-unit community built in 1987. Autumn Trails is a full-cycle investment with a August 2020 entry date and an exit date of September 2024.
Value-Add
Suncrest
The investment thesis for Suncrest involves taking advantage of the expanding e-commerce and logistics industry on the west side of Indianapolis.
Core Plus
Villas on Fir
A great example of Gray Capital’s ability to find opportunities for cash flow and to exploit market inefficiencies with Core Plus Assets.
Value-Add
Oakdale Square
A class B apartment community located in Bloomington, IN.
INVEST WITH US
Gray capital invests alongside our partners, joining sophisticated family offices and individual investors looking to take advantage of the unique benefits of multifamily real estate.
