West Isles Club Apartments

PROPERTY CHARACTERISTICS

• 192 apartment units
• One of only three institutional-quality apartment buildings in Key West (one of the highest barriers-to-entry markets for new development in the U.S.)

ACQUISITION

• June 2014

INVESTMENT OPPORTUNITY

• Relationship with private seller presented possibility to purchase the property at a discount from market value
• Most leases were underpriced relative to market rents
• The apartment complex was long overdue for unit renovation

EXECUTION

• Increased rents even in unrenovated units; significant increase in NOI in less than one year
• Refinanced a year after acquisition, returning the majority of equity invested while maintaining similar leverage
• Sold the asset in April 2017 for $58.8mm, equating to $296,000 per apartment and a 44% gain from the purchase price