CLAWSON, Mich., July 11, 2024 /PRNewswire/ -- The GSH Group announces another successful sale and significant returns for investors with the sale of Glengarry Park, a 300-unit apartment community in Waterford, MI. Initially purchased in Q4 of 2019 for $22.6 million, the property was sold at the end of June for $31.35 million, marking a significant milestone for the company and its investors.
Over the 4.5 years of ownership, GSH invested $2.5 million in capital improvements, including unit upgrades, exterior work, and beautification of the property grounds. In September 2022, GSH refinanced the asset, returning 30% of the original equity to its investors.
The success of this investment is attributed to GSH's robust value-add program and management optimization practices. These efforts resulted in a 26.8% increase in yearly NOI, or $404,000, and an average rental rate increase of 27.3% above the rates upon acquisition. Despite facing significant challenges from COVID-19 and inflation, Glengarry Park performed in line with the business plan, generating a deal-based IRR of slightly above 18%.
"We are extremely proud of the results of this full-cycle deal," commented Gideon Pfefer, GSH CEO & Managing Partner. "This sale highlights our ability to execute our business plan effectively and adapt to changing market conditions. We look forward to the next opportunity and continuing to deliver strong returns for our investors."
The GSH Group recently celebrated another noteworthy sale of its Foote Hills property, achieving an impressive investor IRR of 15.25%.
GSH recently launched a new fund leveraging its proven investment strategy that has consistently delivered strong returns. For investors looking to capitalize on the current favorable conditions in the multifamily real estate market, click here to learn more about this exciting new investment opportunity.
About GSH:
Founded in 2017, The GSH Group specializes in owning, managing, and improving multifamily communities in desirable locations with strong potential. With approximately $1 billion of acquisitions, GSH has transacted on approximately 9,472 apartment units in the country's top housing markets.
GSH is an Inc. 500 company and was recently recognized for other outstanding accomplishments in the industry, including the prestigious M&A Award 2024 for its creative financing deployed to close the region's top multifamily deal of 2023. To learn more, visit gshrealestate.com.
MEDIA CONTACT:
Mataan Lis
Director of Investor Relations
248.787.4745
SOURCE The GSH Group