Highgates has completed the sale of High Park Apartments, a 96-unit multifamily community in New Albany, Indiana, part of the Louisville MSA, for $9.5 million.
Highgates acquired High Park in July 2019 for $6.59 million and owned and operated the property through its in-house management for seven years. During that period, the firm invested approximately $500,000 in capital improvements, including roofing, HVAC systems and unit interiors. The property was financed at acquisition with a ten-year, fixed-rate Freddie Mac loan at 4.41%, which remained in place for the full hold. No additional capital was called from investors.
Investors will receive a full return of their capital, their full preferred return and a share of the profits above it. The investment far exceeded its preferred return hurdle and generated an IRR of 14.2% and an equity multiple of 2.4x.
“Many multifamily investments made in recent years were financed with short-term, floating-rate debt, and a number of them have since faced capital calls or a loss of investor equity,” said Joseph Waldman, Founder and CEO of Highgates. “We financed High Park with long-term fixed-rate debt, managed it with our own people, and sold when pricing was right. We are pleased with the result for our investors.”
Highgates invests its own capital alongside its investors in every project and operates through local offices, with its own acquisition, construction and asset management teams in each of its markets. The firm continues to develop and acquire multifamily communities across Kentucky, Indiana, Texas, Iowa and recently moving into Ohio.
