Creekbridge Crossing and Westwood Crossing Apartments were initially acquired by BIP in September 2021 as a portfolio of 200 units (112 units in Creekbridge & 88 units in Westwood) as part of BIP’s Multifamily Fund I strategy. Located in Brandon, Fl one of the strongest performing submarkets in the Tampa MSA- the transaction yielded a 11.34% Internal Rate of Return (IRR) and a 1.18x equity multiple. This outcome is particularly noteworthy considering the prevailing market headwinds characterized by uncertainty, including but not limited to, high inflation, general market volatility, insurance crisis in Florida, and an ongoing increase in interest rates.
Despite operating amidst challenging market environment, where several asset classes have experienced value attrition, the achievement of a double-digit IRR demonstrates the success of our fundamentally conservative approach. The success of this case study can be attributed to the timely and strategic acquisition of the properties at a purchase price that made sound financial sense. The decision was grounded in acquiring the assets below their replacement cost and conducting a thorough analysis of market comparables. Additionally, the acquisition of both properties was made possible through the placement of highly attractive debt, featuring a fixed interest rate of 2.88% and full-term interest-only payments for a duration of seven years which was assumed by the new Buyer.