We are pleased to have a guest blog post from Tim Wallen, CEO of MLG Capital. He provides a review of the investor returns from the MLG Private Fund and introduces their latest offering, Presidio Apartments.
The following are solely the opinions of Mr. Wallen and do not constitute financial advice or counsel from RealCrowd. As always, please consult your investment advisor prior to making any investment decisions.
With the launch of our latest offering on RealCrowd, Presidio Apartments, we wanted to take this opportunity to celebrate the success of our first deal on RealCrowd, MLG Private Fund I.
In early 2014, we opened up investment opportunities in the MLG Private Fund I to RealCrowd investors. The investment strategy was focused on small to middle market real estate investments, with target total returns (IRR) of 13%-15%. Recently, one of the fund’s acquisitions, Windridge Apartments, successfully executed on its project plan and we elected to sell the property.
With the sale of Windridge Apartments, MLG Private Fund I more than doubled its equity investment in under two years’ time, when including the quarterly and sales distributions to the fund. The success in this property investment allowed us to return 30% of the total fund equity to our investors in the MLG Private Fund I, including many RealCrowd investors.
So how did we do it?
During our ownership of Windridge, we successfully grew income and reduced operational expenses, which included significant utility expense reduction by implementing a water conservation program. We also invested money into the property to improve the exterior look and feel of the property. These improvements and others allowed us to achieve 97% occupancy at the time of the sale. It is unusual to have this level of success in under two years of ownership. The key to this success was acquiring Windridge on an off market basis and good property management efforts by our local Dallas office.
We are excited to realize a win for our investors and we look forward to continuing on this trajectory. We invite all interested parties to view our latest offering, Presidio Apartments.
Disclaimer: This information is not intended to constitute legal, financial, or tax advice and should not be used in lieu of any professional’s advice.