Palatine Capital Generates 19.3% IRR on Sale of Boston Assets in Value-Add Play
- Sep 10, 2010
Boston – Palatine Capital Partners has sold two Boston multifamily properties for $7,350,000.
The two properties, totaling 40 units, were acquired in the winter of 2007 and were sold to a local buyer last month. The investment generated a 19.3 percent IRR to Palatine.
“We are very pleased with this sale,” says Alex Hurst, founder and managing partner of Palatine Capital Partners. “These investments represent a successful apartment investment and repositioning for us. We substantially improved operations, particularly at Hilltop, the larger of the two properties, where we rehabbed the asset and increased rents during our investment period by over 38 percent,” Hurst adds.
Hurst says the company generated a 19 percent IRR overall and a 23 percent IRR for Hilltop, “which is a fantastic return during a difficult period for commercial real estate transactions.”
Palatine, a private real estate principal investment firm focused on buying apartment assets and performing and non-performing first mortgages in every asset class, is continuing to make opportunistic investments in the apartment space and acquire secondary debt across all asset classes.
“We have made six investments this year already. We are actively buying situational and value-add apartment investments primarily east of the Mississippi and secondary mortgages nationwide secured by all asset classes,” says Hurst.