We just closed on the refinancing of an 11 unit apartment building.
We bought the building two years ago for $2.65MM, then spent another $900k renovating it, bringing the total investment to ~$3.55MM.
Our net loan proceeds on the refi are $3.54MM and we’ve accumulated ~$250k in cash from operations since lease-up.
So, today we’re going to be able to return a bit more than 100% of the capital invested in the deal to the investors.
Since this is beautifully renovated (to the studs!), non-rent control building in a prime area, we’ll hold it forever, with a levered yield that is, literally, infinite.
The refi was delayed by 2-3 months due to some wrangling with the bank, so I wouldn’t say this is literally the perfect Adaptive deal.
But it’s close.