214 multi-family residential units
In 2013, Warren Private acquired a 214 apartment multi-family complex in Suitland, Maryland, USA for $19.2 million in conjunction with our US operating partner Dragone Realty Investments.
Built in the 1960’s, the property comprises 15 four-storey buildings on 10 acres. The grounds of the property contain a swimming pool and substantial landscaped areas.
The Property benefits from easy access to employment and retail centres throughout the Washington DC metropolitan area as it is close to the Suitland Metro Station and is also just three miles from the I95/I495 Capital beltway. The property is also close to the Suitland Federal Centre, which hosts 6,000 US Government employees in 2.5m sq ft of space on a 226 acre site.
Prior to its acquisition by Warren Private, Dragone Realty Investments was the project manager of a substantial $3.2m renovation of the property. These renovations and improvements set the Property apart from competing rental communities, and allowed for higher and more stable rents to be achieved.
The investment period was five years, during which investors received cash distributions averaging c.7.5% per annum. The property was sold for $25m in 2018, and produced strong overall investment returns of a pre-tax IRR of c.13.5% and a pre-tax profit of c.170% of investors’ original investment amount.
|Purchase Price:||$19.2 million|
|Investment Period:||c.5 years|
|Actual Annual Distributions:||c.7.5%|
|Actual Profit on Investment:||c.170%|