IMG announces refinancing of 136-unit community
WOODLAND HILLS, December 1, 2020 — Investors Management Group, Inc. (“IMG”) announced today the successful refinance of a 136-unit property in the Portland, Oregon metro.
IMG and its investors closed the $18.8 million refinance of Caldera at Sunnybrook, a multifamily community located 25 minutes outside of downtown Portland in Clackamas, Oregon. The new loan provides a substantial return of capital to owners and funds ongoing property improvements. Caldera’s appraised value at refinance represents a 40% appreciation increase since IMG’s acquisition in 2017.
IMG acquired Caldera with a business plan to renovate the 1980-built property. Rehabilitation expenditures of over $2 million to date have gone into upgrades such as remodeling apartment interiors and constructing a new community clubhouse, fitness and leasing center. Operations have surged under IMG’s asset management during the repositioning period, with net income growing an average of 13% per year over the last three years.
“We secured a long-term loan at historically low interest rates to preserve low debt service costs,” said Marc Gordon, Principal and CFO of IMG. “Additionally, the refinance unlocks asset value gains we’ve built over the past three years. This makes good sense from both operations and investment management perspectives, benefitting our tenants and investors.”
The community features a mix of 1-, 2- and 3-bedroom apartments across nine acres. Caldera is located in the Clackamas/Happy Valley submarket, one of the metro’s fastest growing areas. Strong demographics, reflected in a $94K average household income within two miles of Caldera, have spurred the development of new schools and high quality retail offerings. Light rail service is less than one mile from the property connecting residents to downtown, Portland’s Westside (headquarters for Nike and Intel) and the airport.
Freddie Mac provided the loan, originated by David Bleiweiss, Berkadia’s Managing Director of Mortgage Banking in Irvine, California.
Investors Management Group (“IMG”) is a real estate sponsor focused on multifamily assets across a national platform. We buy, improve and manage apartment communities to enhance the resident living experience and maximize value for our investors. Our network of more than 1,000 clients includes accredited investors who are individuals, family offices and/or joint venture partners.
IMG has acquired over 10,000 multifamily units ($1.2 billion) since 2010. Total investor capital in IMG-sponsored multifamily real estate exceeds $500 million. The company currently owns and asset manages a $1 billion multifamily portfolio reflecting over 4,500 units nationally.
IMG has delivered to its partners an average 2.0x equity multiple and 26.5% IRR over 25 full-cycle investments since 2010.
For information on investing with IMG in future apartment offerings, please contact us at email@example.com.