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- Avg Annual Cash-on-Cash Return: 7.30%
- IRR: 14.20%
- Equity Multiple: 1.84x
INSTITUTIONAL-QUALITY ASSET, IMMEDIATE CASH FLOW
Propelled by enhanced amenities, a variety of floor plans, and a location within one of Charlotte’s largest job districts, Stone Ridge maintained strong financial performance in 2019. Stone Ridge’s operations in 2019 continue a trend of increasing rent levels and income collections. Total income is up 20% over the trailing two years since 2017. Actual year-over-year income growth near 10% in 2018 and 2019 has been driven by select unit renovations and upward pressure on rents market-wide.
RECENT ACCOLADES PROMISE CONTINUED ECONOMIC AND POPULATION GROWTH
The Charlotte MSA enjoys one of the highest in-migration rates in the country, and consistently ranks as one of the top moving destinations in the United States. Strong market fundamentals, including robust population growth and an educated workforce, are sustaining Charlotte’s ongoing expansion phase.
Charlotte is a top IMG acquisition market due to this dynamic economic and population growth paired with compelling asset pricing. The Reserve at Providence, sold in 2018 as IMG’s first full-cycle investment in Charlotte, delivered investors a 24.2% IRR and 2.1x equity multiple over a three-year hold period.
ENHANCED CLASS-A VALUE-ADD STRATEGY
IMG’s business plan for Stone Ridge is to direct physical upgrades and operating efficiencies that will both improve the resident experience and maximize investment returns. It will expand upon the rehab scope in progress with the current owner.
STRONG SPONSOR, PROVEN TRACK RECORD
IMG’s North Carolina multifamily assets have delivered attractive investor yields across eight prior investments, representing $280M in transactional volume. IMG currently owns 1,208 units across seven properties in North Carolina and sees the opportunity to realize the benefits of potential expense efficiencies across its South Charlotte portfolio. Implementing synergies to share the expense load of variable line items presents a chance to reduce operating costs to levels of market comparables, driving future bottom line NOI growth.