In 2019, BIP was presented with a limited marketed fractured condo opportunity in Melbourne, approximately three miles from University Village. The opportunity consisted of 92 of the 112 units in the community. All units included the same spacious two-bedroom, two-bathroom floorplans.

The limitations of the offering included the unavailability of historic operating financials. Furthermore, as sponsorship evaluated the opportunity and began negotiating a contract, occupancy was steadily decreasing to below stabilized figures. Therefore, obtaining a loan commitment from most lenders would be challenging.

However, considering that BIP had four years of operating history with a competitive asset that was also a fractured condominium (Village at Melbourne) and had evaluated several other properties in Melbourne, sponsorship was able to underwrite the opportunity with its own data points. The lack of operating financials limited buyers’ ability to compete in the acquisitions process of the asset, which resulted in a attractive opportunity for BIP to acquire Harvard Condominiums considering its track record and local knowledge of the submarket.

BIP was able to leverage a strong lender business relationship and obtained a three-year floating rate loan, which would enable the partnership to stabilize the property and generate a history of financials with the goal of obtaining traditional fixed-rate financing in the medium term. With an occupancy level just under 70% at closing, occupancy was stabilized at 95% within the first six months of operations. Since closing on the property, BIP acquired an additional six units.

In September of 2021 the asset was sold, generating net investor returns of a 50.19% IRR and a 2.43x equity multiple.