• In February 2017, Ascendant RE1 LLC, with its founder as the sole investor, purchased a 216 unit multifamily property in Dallas, Texas.
• The Property is a Class C Property in a C location. The acquisition and exit strategy was to increase effective rents from 84c PSF to $1 PSF by burning off the loss to lease.
• The Property was sold in November 2021 for a profit of 4x the initial investment, and an annualized IRR in excess of 35%.
• The Property was initially managed by a major management company that was not able to operate the Property, and brought down occupancy from 96% to 80% within 6 months.
• The founder of Ascendant RE1 LLC established a real estate management company, Evergreen RE Management to personally manage the turnaround from 2020 to 2021.
• During this period, despite the pandemic, and an eviction moratorium, the founder, working as on-site Acting Property Manager, increased economic occupancy from 68% to 94%, revenues by 36%, and effective rents from 86c to over $1 PSF.
• Following the significant improvement in operations, the exit was realized at a 4x multiple.
• A month after the sale of the Dallas property in November 2019, in December 2021, Ascendant RE1 LLC invested the proceeds from the sale of the Dallas property in an off market investment. The Property is managed by Evergreen RE Management, and is sub-managed by a leading management company in the Houston market.
• Ascendant Identified Katy, TX as the fastest growing suburb of Houston, which is benefiting from a migration westwards and has one of the best school districts in Texas.
• Regalia Bella Terra LLC was formed to purchase Regalia Bella Terra Apartments, a 227 unit Class A property constructed in 2016 (www.regaliabellaterra.com) in Katy, one of the affluent, fastest growing suburb of Houston
• The Property has outperformed its competitors with respect to both absolute rent and occupancy, while delivering a high level of resident service and retention. Occupancy is currently 97%. In nine months since the purchase, the Property has increased market rent by over 12%, effective rent by almost 10%, operating income by almost 30% and market value by approximately 12%. The current cash on cash return on investment is approximately 9.5% per annum. If the Property were sold today, investor IRR would be 42% annualized.
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