Park Place is a well-located prime asset that hadn’t been renovated in 50 years and was renting for about 60% it’s peers and owner-managed. We purchased at a steep discount to market and began to implement our value-add program in 2020 as well as putting in place professional management. Demand for real estate in Palm Beach County, Florida has been at such an all-time high that the Financial Times declared the area ‘sold out’ in October 2021 after a record-breaking year. And there’s a good reason why. Incredible weather, pro-business policies and an autonomous vaccination mandate have driven a significant uptick in migration from business districts like New York to the Sunshine State, boosting the region’s real estate investment potential.
]With in-place rents lagging 40% behind market comparables, we saw an opportunity to unlock significant value. Leveraging our expertise, we implemented a comprehensive value-add program in 2020, focusing on extensive unit renovations and amenity enhancements. This approach yielded remarkable results, more than doubling average rents from $600 to $1400. Our successful execution culminated in a May 2023 sale, delivering exceptional returns to our investors with a 3.6x gross equity multiple and a 67% IRR.
Key Performance Indicators:
- 20% cash-on-cash return by Year-3 on original capital
- 3.6x equity multiple achieved from 2020 to 2023
- 67% IRR, showcasing the power of our value-add strategy
.jpg)