Strategy: Ground up Development
Units: 268
Year Built: 2017
Total Capitalization: $42,400,000
Sale Price: $62,250,000
Hold Period: 29 months
Multiple on Equity: 2.49
IRR: 41.3%

Ownership completed construction in 16 months (underwrote 14 mos) and was approximately 4% over budget. Ownership leased the property to 70% and sold via a Pre-Sale to CIM Group. As free rent was entering the market, Ownership felt it was prudent to sell as a pre-sale opportunity. Shortly after closing up to 2 months free rent entered the market. Stacks’ pre-sale underwriting contained no free rent. The property was recently sold to the founder of WeWork.