investment

Case Studies

Shawsheen Heights Apts, a 12 unit apartment complex located in Lawrence, MA, was purchased in 2015 for $910,000, including $260,000 of investor equity. The targeted hold period was to be 5 years, though Arrowpoint sold the property after 20 months for $1,160,000, resulting in an IRR to equity of 38% and an equity multiple of 2.84. Arrowpoint was successful in implementing its value-add strategy, which in turn increased the property’s value by more than 27%. The investors from that deal realized their gains and reinvested into another Arrowpoint acquisition, also located in Lawrence, MA.




The Lowell Portfolio, consists of an 18 unit and 5 unit multifamily property purchased together in 2014 for a combined $1,890,000, including $443,000 of investor equity. The targeted hold time was to be 5 years, instead the properties were sold after 18 months for $2,300,000, resulting in an IRR to equity of 30% and an equity multiple of 1.5. The proceeds from the smaller sale were exchanged into a 24-unit multifamily acquisition, allowing Arrowpoint to defer the capital gains taxes and increase transaction value by 21%.

   



The Salem Village Apartments, is a 12 unit apartment community purchased as an off-market transaction at the end of 2012 for $700,000, including $190,000 of investor equity. The property was refinanced in early 2014, with an appraised value of $930,000, representing an appreciation factor of 33%. Approximately half of the investor’s initial equity was returned to the partners which they reinvested into another Arrowpoint offering.