Town Park Villas (“TPV”) was acquired as a fractured condominium as part of BIP’s opportunistic asset strategy in 2015. BIP acquired 66 out of 81 townhomes in TPV, strategically located 2 miles away from the University of South Florida. Town Park Villas’ spacious 3 and 4 bedroom layouts (average 1,493 square feet), resulted in a unique asset in a submarket with very limited competing product available, combined with heavy student and young professional tenant-base demand.
BIP was able to efficiently manage the HOA and rental components of the asset in its initial 3 successful years of ownership, which resulted in a significant increase in NOI. BIP’s original equity partners were open to an exit of the investment as it was their smallest investment; however BIP remained interested in operating the asset. In March of 2018, BIP recapitalized the asset with a new equity partner. BIP further maximized NOI through 2019 and after thorough analysis of the asset’s demand in the market, decided to list TPV for sale in Q4 2019.
After selecting a buyer in December 2019, TPV’s sale was expected to close in Q1 2020, at the height of the COVID-19 outbreak. BIP was able to strategically navigate and work through the hurdles the buyer encountered during their anticipated March closing date, by keeping open lines of communication with all relevant stakeholders and ultimately extending the closing date. TPV was sold in May 2020 and delivered net investor returns of a 21.5% IRR and 1.5x equity multiple.