Background:

Built in 1985, University Green is a two-story garden-style apartment complex. Acquired in September 2005 as an acquisition-rehab opportunity at a significant discount to replacement cost, Security Properties improved management and commenced renovation. The successful execution of the business plan helped Security Properties achieve a sales value exceeding expectations.

Highlights:

• Estimated to be purchased at approximately half of replacement cost at the time of purchase.
• Strong deal fundamentals garnered considerable interest, resulting in term sheets from multiple partners.
• Asset sold two years early at a price much higher than anticipated, bolstering returns.