investment
Case Studies
Rivers Edge, a 164-unit highrise located in Haverhill, MA was purchased in 2016 for $15,600,000, including $3,600,000 of investor equity. This was a value-add investment type with a 7-year hold period. Arrowpoint was able to realize its full, stabilized value after only three years, selling the property for $21,800,000, resulting in an IRR to equity of 32% and an equity multiple of 2.16x. Arrowpoint was successful in implementing its value-add strategy, which in turn increased the property value by 40%. The investors from this deal realized their gains and reinvested the proceeds via 1031 exchange into a 140-unit community located in Methuen, MA.
Highland Estates, a 48 unit apartment complex located in Pelham, NH was purchased in 2015 for $4,300,000, including $530,000 of investor equity. This was a value-add investment type with a 5-7 year hold period. Arrowpoint was able to realize its full stabilized value after only two years, selling the property for $5,250,000, which resulted in a project IRR of 36.32% and an equity multiple of 2.47x. Arrowpoint was successful in implementing its value-add strategy, which in turn increased the property’s value by more than 22%. The investors from this deal realized their gains and reinvested the proceeds into another Arrowpoint acquisition located in Methuen, MA.
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.
Rivers Edge, a 164-unit highrise located in Haverhill, MA was purchased in 2016 for $15,600,000, including $3,600,000 of investor equity. This was a value-add investment type with a 7-year hold period. Arrowpoint was able to realize its full, stabilized value after only three years, selling the property for $21,800,000, resulting in an IRR to equity of 32% and an equity multiple of 2.16x. Arrowpoint was successful in implementing its value-add strategy, which in turn increased the property value by 40%. The investors from this deal realized their gains and reinvested the proceeds via 1031 exchange into a 140-unit community located in Methuen, MA.
Highland Estates, a 48 unit apartment complex located in Pelham, NH was purchased in 2015 for $4,300,000, including $530,000 of investor equity. This was a value-add investment type with a 5-7 year hold period. Arrowpoint was able to realize its full stabilized value after only two years, selling the property for $5,250,000, which resulted in a project IRR of 36.32% and an equity multiple of 2.47x. Arrowpoint was successful in implementing its value-add strategy, which in turn increased the property’s value by more than 22%. The investors from this deal realized their gains and reinvested the proceeds into another Arrowpoint acquisition located in Methuen, MA.
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.
