Value Add multifamily acquisition on behalf of AF Evans Company, a Bay Area based owner, operator and developer of 7,000 units of multifamily and senior housing.


  • Purchase Price: $19.5M
  • Renovation Cost: $4.5M
  • Total Development Cost: $24M
  • Sold 2 years after purchase for $30.7M yielding 35% IRR
  • Current value: $70M

IPG Services Provided

Property identification, underwriting, contract negotiation, market analysis, sourced and structured financing, designed and executed value add renovations, marketed and sold property upon completion of renovations.

Our experts on this project

The Assignment

  • Formulate and execute value add acquisition and renovation of garden style Class C apartment community with extensive deferred maintenance in desirable high barrier to entry market.

The Challenges


Extensive Deferred Maintenance


Market Assessment


Neighborhood Opposition

  • Extensive Deferred Maintenance. 60 day close of escrow requiring extensive and accurate property condition assessment given deferred maintenance.
  • Market assessment. Required in-depth market research and competitive analysis to get comfortable with the high rents needed to justify value add improvements.
  • Neighborhood opposition. Required intensive meetings with existing residents and neighbors while under contract to obtain support for renovation program.
  • Renovation required relocation of residents to allow for extensive building improvements and completion of renovations within 15 months.

The Success


Sourced and structured favorable debt and JV equity financing


Completed $4.5M renovation in 15 months


Increased rents on renovated units by 30%

  • Property was in terrible condition and not widely marketed, allowing for negotiation of favorable acquisition price.
  • Completed extensive $4.5M renovation ($25K/unit) and repositioning in 15 months including new siding, new windows, new roofs, adding in-unit washer dryers and extensive site and interior upgrades.
  • Increased rents on renovated units by 30%. Sold property upon completion of renovations resulting in 35% IRR.
  • Sourced and structured favorable debt and JV equity financing.
  • Performed extensive market analysis to determine appropriate rehab scope and corresponding rents.
  • Property is currently valued at $70M.
  • Property was awarded “Most Beautiful” renovated apartment community by the City of Santa Rosa.
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