The Royce at Trumbull offering on the RealtyMogul investment platform is now open for pledging.
The Royce at Trumbull is an 11-building, 340-unit complex featuring resort-style amenities for its residents. The amenities include a private pool, grilling and patio area, recreation building, fitness center and a basketball court.
Located 25 miles outside of Stamford and 65 miles from New York City, the multifamily complex is in an affluent area with an average household income of over $150,000. The complex is ideally located near top-rated retail, schools, employment and recreation. The county features 19 Fortune 1000 corporations and, according to Forbes, Fairfield County ranks No. 8 nationally in education.
The property was purchased off-market for $101.1 million, which at $297,000 a unit is well below comparables within the county. This discounted purchase price allows for new owner Colony Hills Capital to offer significant value-add potential to investors.
The property’s seller renovated 30 units in the complex, and Colony Hills Capital plans to renovate 91% of the units. These renovations will allow for an increase in rent by an average of $464 per unit. Even with the increase in rent, The Royce at Trumbull will offer more amenities and living space than its competitors once renovations are completed.
- Minimum investment: $35,000
- Target internal rate of return (IRR): 21.2%
- Target equity multiple: 2.48x
- Target cash yield: 7.5%
- Target investment term: five years
Colony Hills Capital is a private real estate investment firm that specializes in value-add multifamily housing. The firm focuses on underperforming, mismanaged and undervalued class A- through B- multifamily assets in growing markets. Since the firm’s inception in 2008, it has handled over $1 billion in total transactions, including over 11,200 apartments and 35 multifamily properties. Colony Hills Capital has over $500 million in assets under management.
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