Del Mar
- Houston, TX
Juniper seized the opportunity to acquire Del Mar in the aftermath of the 2008 financial crisis while the property was under foreclosure, recognizing the potential for substantial gains in this distressed asset.
Overview
The strategy for Del Mar centered on a comprehensive renovation initiative designed to elevate the property to market standards. This involved significant capital investment and careful planning to improve the physical condition and overall appeal of the property, positioning it for enhanced profitability and long-term success in a recovering market.
Acquired 2010
Status: Sold 2022
The Results
During Juniper’s 12-year ownership period, Del Mar underwent a remarkable transformation through an intense capital program implemented by First Choice Property Management Group.
Early success and a recovering market enabled Juniper to refinance the mortgage in 2014, providing investors with a full return of equity capital and additional proceeds to fund additional capital improvements while maintaining ownership. In fact, while the original business plan called for only $1.2MM of renovation capital, the 2014 refinance allowed Juniper to invest a total of $5.45MM into asset improvements to further enhance value.
A second refinance was executed in 2018, from which an additional $7MM was distributed to Limited Partners – cumulative distributions now totaled almost 600% of original equity. Over the course of Juniper’s stewardship, monthly Net Operating Income (NOI) surged from below $50,000 in 2010 to a peak of $250,000.
Upon sale in 2022, investors achieved an impressive 40% internal rate of return (IRR) and an 11x equity multiple on the initial $3.5MM equity investment. In an effort to optimize tax ramifications, Juniper and its partners elected to execute a 1031 exchange into Residences at Boardwalk, a Class A multifamily asset located in Bixby, OK and constructed in 2017.
all-in cost
$10,200,000
original equity
$3,500,00
Year Built
1979
total units
544
avg sq. ft. / unit
759
units renovated
91%
Starting rent
$560
ending rent
$815
rent increase
$255 / +45%
hold period
12 years
