Meadows on Memorial, 96 Units

This fractured townhome property was acquired from an Institutional Owner in late 2005.  Most of the market simply could not understand how to extract value on a series of 4-plexes (24 out of 32) with a dysfunctional HOA.  If viewed as a 96-unit, the cash flow was anemic and the problem of a fractured community made any sort of exit limited.  Selling individual units off to retail buyers wasn’t a viable option, either, since each multi-unit building had a single legal description.  We, however, saw the exit clearly.  Our plan included physical rehab, an overhaul of the HOA, and a disposition of individual buildings to local investors.  In the end, we were able to provide an opportunity to acquire small multifamily assets in an excellent location with a captive renter market.  The project was owned re-sold in approximately 6 months netting the partnership a 2x multiple on equity.