Strategy: Value Add Acquisition
Units: 400
Year Built: 2004
Total Capitalization: $6,268,000
Sale Price: $91,250,000
Hold Period: 16 months
Multiple on Equity: 3.44
Project Level IRR: 89%

SCH acquired Preserve at Port Royal in August of 2020. The property was originally put under contract in the beginning of the COVID pandemic and had to be completely recapitalized in the challenging market COVID presented. While under contract the property occupancy dropped from mid 90% to just over 70%. As a result of this SCH was able to negotiate a sizeable discount to complete the transaction.

SCH implemented a full exterior renovation including roofs, exterior siding and paint as well as various other exterior repairs. Interior renovations were also completed on select units.

Through the hold period SCH was able to increase the rental rates over 20% while stabilizing the rent roll and property operations. The improved financial operations allowed SCH to exit the property for a value far exceeding their targeted sale price in a time frame much shorter than anticipated.