Wrapping Up 2018 With a Win!
Clarendon Park Apartments Close a Year Ahead of Schedule
We are excited to announce that the Clarendon Park Apartment Project closed as of December 6, 2018. This is great news because it exceeded our expectations by closing more than a year ahead of schedule. We do a lot of due diligence to give the most accurate projection of a project as possible. On the occasion that a project is off the mark by a few months or a few dollars we can roll with that. But we’re giving Clarendon Park a big SHOUT OUT because it reflects what we strive to do at Loewen Capital. We dive deep into the analysis of the numbers to give the most realistic, conservative estimate of time horizons, and returns, so our investors can make informed decisions. So when we can deliver with positive variances, that’s a win/win for everyone.
Here is a brief overview of the project:
Clarendon Park MF, LLC (the “Company”) in partnership with Rincon Partners, acquired Clarendon Park Apartments (the Property) in Phoenix, AZ on March 14, 2017 for $17,500,000. ($126,812/unit). On December 6, 2018 the property was sold for $23,850,000 ($172,862/unit).
Over a 15 month period $1,800,000 ($13,043/unit) worth of capital improvements were made to both the interior and exterior of the property.
The Company’s portion of cash flow and net sale proceeds on the $750,000 we invested directly in the Property, returned our investors an annualized 14.7% return. The investment hold period was 1.75 years, 1.25 years ahead of projection.
It has been a great year for Loewen Capital LLC. We continue to grow as an investment family which puts us in a position to seek out larger projects with even greater potential. We funded several projects in 2018, including a from the ground up class A multi family development in Savannah,Ga and a value-add multi family opportunity in Chandler, AZ. For 2019 we are working diligently on the development of a 350,000 square foot industrial distribution center in Riverside, CA. We will have updates on this project soon. We are presently looking at several opportunities and conducting the due diligence necessary before bringing them to the attention of our investors.
As I reflect on 2018, I realize I have been so fortunate. It’s not just the revenues that make a business successful, it’s the people and the culture that is built around it. I have a great team of strategic partners that help facilitate the number crunching, legal matters, and boots on the ground time to ensure the success of each project. It’s a team that I can count on to bring my investors the best opportunities we can find. As for my investors they are the reason I get up every morning with passion and purpose. I keep in close communication because you are my investment family and I enjoy the relationships we’ve developed. Thank you all for contributing to my business success and the pleasure I get from being connected with you.
I want to wish everyone a happy, peaceful, joyful holiday and prosperous 2019!