We acquired the Lantana Trace (“LT” or the Property”) Apartments (Class C apartment community located in Austin’s North submarket) in 2015. Prior to our purchase of LT, the Property was 98% occupied.  However, we felt the occupancy was inflated since the average, in-place, monthly market rents were $683. By comparison, there were several comparable Class B & C properties in the submarket that were achieving rents averaging above $800 per month. Our own assets in the same submarket as LT were achieving interpolated monthly rates of $750 prior to our acquisition. As such, we saw a clear and compelling opportunity to raise rents further by completing various capital improvements and taking advantage of the strong rental demand in the North submarket buoyed by several factors, including the 700-acre Mueller Airport redevelopment, the newest and largest Austin Community College campus, as well as Apple Computer’s new $300 million, 39-acre campus, that will be the future home of the company’s America’s Operations Center.

After executing the renovation of several interior units and performing repairs and upgrades to the Property’s exterior, we were able to increase overall rents by nearly 22% since inception.  Because of the age and size of the Property, including the forecast need for additional capital improvements, the Company realized upon its investment during Q418 via a sale to a prominent family office.