2900 Ambassador Caffery Pkwy, Lafayette, LA 70006. West side of Amabassador Caffery just north of W. Congress St., 3.5 miles west of the I-10 interchange and 3.5 miles west of downtown. The property is immediately adjacent to the Regional Medical Center of Acadiana.
Background & Strategy:
Diamond Lakes is a 312-unit apartment completed in 1984. The property is located in rapidly growing Lafayette, LA. GAA acquired the property in July 2013 from Fannie Mae and commenced a property renovations to upgrade the property exteriors, clubhouse and unit interiors. The upgrades are projected to lead to rental rate increases in excess of $100/unit/mos.
- Exceptional projected investment returns (annual cash on cash returns greater than 20%; projected gross IRR > 40% for a 5-year hold
- Attractive acquisition price at +/- 80% of replacement cost
- Significant Value Creation potential via unit upgrades and improved property management
- Lafayette economy is diverse, growing and very strong
- Local apartment market is strong and underserved, occupancies greater than 95%
Purchase Price: $22.925 million ($73.5k/unit)
Debt: $17.8 million (BB&T)
Equity Partner: Pensam Funding, et al