HPI Sells Portfolio for $278M

By IvyLee Rosario

Tides at Calabash, Sunset Beach, N.C.

Hamilton Point Investments has liquidated its $205 million, 11-property HPI Real Estate Opportunity Fund III. A private investor purchased two of the assets located in Atlanta and a publicly traded REIT acquired the other nine properties across five states.

The full-cycle sale yielded an 18.2 percent IRR net to investors and a 1.6x equity multiple over the fund’s 3.5-year hold period. The combined sale price totaled $278 million. The portfolio comprises 2,954 units at the following properties:

• Live Oak Trace, Baton Rouge, La., 264 units
• Tides at Calabash, Sunset Beach, N.C., 168 units
• Aslan on the River, Atlanta, 324 units
• Schirm Farms, Columbus, Ohio, 264 units 
• Cherry Grove Commons, North Myrtle Beach, S.C., 172 units
• Kensington Commons, Columbus, Ohio, 264 units
• Riverchase, Indianapolis, 272 units
• Reserve at Garden Lake, Atlanta, 278 units
• Hartshire Lakes, Indianapolis, 272 units
• Creekside Corners, Atlanta, 444 units
• Brunswick Point, Wilmington, N.C., 288 units 

Cherry Grove Commons, North Myrtle Beach, S.C.

“HPI acquires post-2000 construction properties in growing secondary markets for well below replacement cost,” Matthew Sharp, co-founder & managing principal of Hamilton Point Investments, told Multi-Housing News. “The company then complete a modest unit interior and common area upgrade that, once completed, make its assets look and feel a lot like new construction. However, new construction in these markets costs $140,000 per unit and we’re generally all in for less than $100,000 per unit. This is how we increased NOI and value of the fund III assets significantly over a fairly short period of time.”

Last November, Hamilton Point Investments acquired Woodside, a 240-unit apartment community in Mobile, Ala., from Equity Research Partners for $21 million.

Images courtesy of Hamilton Point Investments