The real estate investment company Boligo Capital reports the realization of two adjacent housing estates in South Carolina, which led to returns of 42% and 38% for Boligo’s investors in the projects, yielding Boligo a success fee of about $ 3.3 million. The first property was purchased by Boligo As a single income-producing property, and in light of the opportunity for initiation and development, Boligo has established an additional housing group on the property, both of which were purchased by a single buyer.
The first housing complex, Crescent Park Commons, contains 240 housing units, and was purchased by Boligo as a rental property in 2017, for about $ 25 million. The equity invested by the limited partners was approximately $ 6.8 million. The free cash flow resulting from the sale transaction amounted to approximately $ 28 million, including current distributions during the investment period, reflecting an annual return (IRR) of approximately 38% and a capital multiplier of approximately x4.1, after deducting success fees and before tax.
Boligo notes that after the acquisition and improvement of the existing income-producing asset, it identified another opportunity for improvement, which did not exist in the original business model, and led to the creation of a significant annual return for the investors in the project. Together with her partner in the US, Buligo said she identified unused land near the entrance to the project during 2019, and by changing the master plan and submitting new construction plans, managed to build three more buildings as part of Phase II of the project, with 78 housing units, in equity. Of only about $ 4.6 million. In light of the opportunity, the free cash flow resulting from the sale transaction was approximately $ 11 million, including current distributions during the investment period, reflecting a dream annual return (IRR) of approximately 42% for investors in the project.
Buligo Capital CEO and Founder, Itai Goren: “The successful realization and the impressive return for investors, testify to Buligo’s ability to identify exceptional investment opportunities and create value for investors. “Raising interest rates in the U.S. is creating an influx into the rental market, and housing clusters are the solution.” The U.S. real estate market continues to maintain high levels of demand for quality properties. “