Case Study
Cambridge Village Apartments
Case Study
Cambridge Village Apartments
Asset Name
Asset Name
Cambridge Village Apartments
Location
Location
Houston, TX
Venture
Venture
RMI / Lionsmark
Property Type
Property Type
Workforce
Size
Size
304 units
All in Cost
All in Cost
$4.2M (~$14K per unit)
Strategy
Strategy
Value-Add / Special Situations
Aquisition Date
Aquisition Date
1998
Sale Date
Sale Date
2021
Projected Exit Value
Projected Exit Value
Realized Exit Value
$24M (~$79K per unit)
Realized Returns
Realized Returns
39.7% IRR / 29.0 EMx
Asset Name
Cambridge Village Apartments
Location
Houston, TX
Venture
RMI / Lionsmark
Property Type
Workforce
Size
304 units
All in Cost
$4.2M (~$14K per unit)
Strategy
Value-Add / Special Situations
Aquisition Date
1998
Sale Date
2021
Projected Exit Value
Realized Exit Value
$24M (~$79K per unit)
Realized Returns
39.7% IRR / 29.0 EMx
Key Investment Thesis
Foreclosure Sale, Asymmetric Risk, Learning New Submarket, Significantly Below Replacement Costs, Leveraged HUD Relationships, Strong Operations/Management, HUD Grants and Cash-Out Refinancings.
Overview
Cambridge Village Apartments (the “Property”) was a distressed HUD mortgaged project that was purchased via a foreclosure sale. Mark Barineau was the GP at RMI that led the Property’s acquisition, rehab, asset management and property management. The Property was later managed by Lionsmark leading up to the sale.
Acquired through a verbal auction, the Property was in need of a significant renovation and was upgraded into a B-class apartment complex, generating a 39.7% Gross IRR and a 29.0 EMx over 23 years.
Mark led several significant value-add rehab projects over the years that included a complete overhaul including mechanical systems, interior renovations, new windows and flat roofs.
After a successful initial rehab, RMI effectuated a cash-out refinancing returning all their investor's capital ($800K) after one year. RMI refinanced the property twice during their ownership.
Sourcing
The Property was part of a HUD foreclosure program known to the principals of RMI as they had built a portfolio comprised of mainly foreclosed HUD assets.
True to form, RMI successfully won the verbal auction and moved quickly to close on the Property in ~90 days.
Business Plan Execution
RMI structured the transaction to reduce downside exposure and create an asymmetric risk profile, acquiring this Property in distress for significantly below replacement costs at $4.2M (~$14K per unit).
After two refinancings and a HUD weatherization grant, Mark brought this Property under the Lionsmark umbrella as part of his RMI GP buyout in 2016.
At the height of COVID-19 in 2021, Lionsmark sold this property for $24M (~$79K per unit). Over the course of the hold-period, over $23M of capital distributions were returned to investors.
Key Investment Thesis
Foreclosure Sale, Asymmetric Risk, Learning New Submarket, Significantly Below Replacement Costs, Leveraged HUD Relationships, Strong Operations/Management, HUD Grants and Cash-Out Refinancings.
Overview
Cambridge Village Apartments (the “Property”) was a distressed HUD mortgaged project that was purchased via a foreclosure sale. Mark Barineau was the GP at RMI that led the Property’s acquisition, rehab, asset management and property management. The Property was later managed by Lionsmark leading up to the sale.
Acquired through a verbal auction, the Property was in need of a significant renovation and was upgraded into a B-class apartment complex, generating a 39.7% Gross IRR and a 29.0 EMx over 23 years.
Mark led several significant value-add rehab projects over the years that included a complete overhaul including mechanical systems, interior renovations, new windows and flat roofs.
After a successful initial rehab, RMI effectuated a cash-out refinancing returning all their investor's capital ($800K) after one year. RMI refinanced the property twice during their ownership.
Sourcing
The Property was part of a HUD foreclosure program known to the principals of RMI as they had built a portfolio comprised of mainly foreclosed HUD assets.
True to form, RMI successfully won the verbal auction and moved quickly to close on the Property in ~90 days.
Business Plan Execution
RMI structured the transaction to reduce downside exposure and create an asymmetric risk profile, acquiring this Property in distress for significantly below replacement costs at $4.2M (~$14K per unit).
After two refinancings and a HUD weatherization grant, Mark brought this Property under the Lionsmark umbrella as part of his RMI GP buyout in 2016.
At the height of COVID-19 in 2021, Lionsmark sold this property for $24M (~$79K per unit). Over the course of the hold-period, over $23M of capital distributions were returned to investors.
A commercial real estate investment and development platform.
2001 Kirby Dr, Suite 310,
Houston, TX 77019
Copyright © 2024 Lionsmark. All Rights Reserved
Terms & Conditions
Privacy & Policy
A commercial real estate investment and development platform.
2001 Kirby Dr, Suite 310,
Houston, TX 77019
Copyright © 2024 Lionsmark. All Rights Reserved
Terms & Conditions
Privacy & Policy
A commercial real estate investment and development platform.
2001 Kirby Dr, Suite 310,
Houston, TX 77019
Copyright © 2024 Lionsmark. All Rights Reserved
Terms & Conditions
Privacy & Policy
A commercial real estate investment and development platform.
2001 Kirby Dr, Suite 310,
Houston, TX 77019
Copyright © 2024 Lionsmark. All Rights Reserved
Terms & Conditions
Privacy & Policy