179 Units — Seattle Metro
Year(s) built: 1968-1978
Location: Tukwila, Washington
Purchase price (2015): $17.7 million
1031 exchanges: 4
Equity invested: $5.2 million
Appraised value at refinance (2018): $34.6 million
IMG acquired Foster Creek off-market. Its outdated unit interiors and passive management had prevented rent growth to keep pace with Seattle's record-setting market.
During the first three years of IMG ownership, rental income grew at an annual rate of 9.5%. This steadily boosted investor cash-on-cash returns to a level of 13.6%.
Cash-out proceeds from a refinance event returned the full amount of the owner’s original equity. Nearly all of the investors directed their refinance cash into a subsequent IMG-sponsored acquisition.