The property counted as a value-add for the seller. During the first year it held Kenton Place, PPA spent over $300,000 on various upgrades and renovations to the property. Three years before its sale, PPA said it was able to increase the property’s NOI by 22 percent, while one year before sale the NOI increase was 15.6 percent.
Kenton Place was originally purchased as part of a three-property portfolio with 10 acres of vacant land. In addition to increasing value at all three of the existing properties, PPA, in partnership with Galaxy Construction, built the Lookout at Comanche Hill, a 150-unit multifamily property, on the site (pictured).
PPA will retain the other properties for now. In addition to receiving almost 50 percent of their initial investment in the entire portfolio back, investors will continue to receive regular quarterly disbursements for the three properties they still own.
The sale is also indicative of some larger trends, a spokesman for PPA told MHN. These trends include an increase in value of multifamily residences, as the rental market continues to increase; the growth of Texas commercial real estate investing; and PPA actively seeking new off-market properties all over Texas to add to its portfolio.