Investment Overview
- Total Investment: $50K
- Description: Acquired as part of a blind investment pool designed to maximize risk-adjusted returns in overlooked markets, including Chattanooga, Birmingham, and Indianapolis.
Investment Strategy
- Acquisition: Conducted in-depth market research to identify submarkets poised for rapid growth. Focused on areas benefiting from Volkswagen’s expansion of its electric vehicle battery plant, which added over 1,000 jobs to Chattanooga. Aggressively bid on a property with deferred maintenance that had previously fallen out of contract multiple times, securing it at a favorable price.
- Value Creation: Addressed deferred maintenance, including water damage, interior paint, and other necessary repairs, to quickly enhance the property’s condition. Completed renovations within 30 days of acquisition and secured a tenant just 15 days after listing.
Key Results
- Occupancy Rate During Investment: 92%
- Entrance Gross Yield on Cost: 10%
- Property Valuation Appreciation: +31%
- Estimated Investor Returns: 25% IRR | 1.8x Equity Multiple
This investment exemplifies Strand Capital’s ability to leverage market intelligence and proactive investment strategies to achieve superior returns. By identifying key economic catalysts and targeting undervalued properties in high-growth submarkets, we secured a strategic acquisition, executed efficient renovations, and quickly stabilized the asset. The result: a well-positioned rental property that generated exceptional appreciation and strong risk-adjusted returns for investors.
Figures shown exclude transaction fees, taxes, and related expenses. Past performance does not indicate future results. Please see our Terms and Conditions
