Investment Overview
- Total Investment: $55K
- Description: Acquired as part of a targeted blind investment pool, strategically focused on maximizing risk-adjusted returns in undervalued markets such as Chattanooga, Birmingham, and Indianapolis.
Investment Strategy
- Acquisition: Executed through an off-market opportunity by swiftly identifying and engaging a motivated seller who was under contract on a new home. Seamless negotiations resulted in purchasing the property below appraised value with additional credits secured at closing for deferred maintenance.
- Value Creation: Quickly captured immediate equity by applying a disciplined acquisition framework and rigorous underwriting, enabling the property acquisition ahead of MLS listing. Achieved rapid stabilization within one month of closing, swiftly leasing to a dependable tenant and implementing consistent annual rent increases.
Key Results
- Occupancy Rate During Investment: 92%
- Gross Yield on Cost: 11%
- Property Valuation Appreciation: 30%
- Estimated Investor Returns: 32% IRR | 2.0x Equity Multiple
Conclusion
The Crestwood Gardens acquisition highlights Strand Capital’s exceptional execution capabilities in capitalizing on timely off-market opportunities. Through efficient negotiation, rapid asset stabilization, and proactive management, this investment quickly generated substantial equity appreciation and robust cash flow. This case exemplifies Strand Capital’s proficiency in swiftly executing investment strategies to deliver strong, risk-adjusted returns for our investors.
Figures shown exclude transaction fees, taxes, and related expenses. Past performance does not indicate future results. Please see our Terms and Conditions
