Aspen Meadow
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A 258-unit community in Hopkinsville, Kentucky, featuring modern amenities, serene surroundings, and convenient access to downtown Hopkinsville.
units
258
Location
Hopkinsville, KY
Category
Value-add
Dev began
Dev Complete
Status
Refi
Type
MOIC
%$ Return at refi
77
% IRR
Case Study · Acquisition and Refinance
Aspen Meadow Apartments
258 units in Hopkinsville, Kentucky. Under contract October 2020, closed June 2021, refinanced April 2022.
The Property
Aspen Meadow is a 258-unit community in a park-like setting just minutes from downtown Hopkinsville, Kentucky. Hopkinsville sits outside Fort Campbell, a major U.S. Army installation, about 75 minutes north of Nashville.
Built in phases from 1979 to 1989, the community includes 31 two-story townhouse and garden-style buildings, plus a freestanding building that houses an indoor pool.
Every home has a full-size dishwasher, central air and heat, a private balcony or patio, refrigerator, electric range, garbage disposal, walk-in closets and washer/dryer hookups.
01 · The Opportunity
An off-market deal built on relationships
The property was never listed or marketed. At the time, CVG CEO Mike Ballard was also a partner in Ascent Multifamily Accounting, a leading accounting provider to the apartment industry. He asked an Ascent client, Billi Joe Suiter, President of Nex-Gen Management in Nashville, to share any off-market opportunities, and Suiter introduced us to the owner.
After several months of discussion, we put the property under contract for $15.48 million, or $60,000 per unit, and partnered with NV2 of Austin, Texas, to cosponsor and syndicate the acquisition.
02 · The Acquisition
Capital structure
We closed in June 2021. Under the tenants-in-common agreement, investors received 85 percent ownership of the property, and the sponsors, CVG and NV2, split the remaining 15 percent.
03 · Execution
Ahead of underwriting from the start
We hired Nex-Gen Management to run the property, and improvements began immediately.
In the first nine months of ownership, we outperformed our underwriting on both total rental income and net operating income.
04 · The Refinance
Most of the capital back, ownership intact
With income growing, we refinanced the seller financing with a Fannie Mae loan of almost $17 million at 65 percent loan to value. The lender's appraisal valued the property at $26 million.
05 · Results
Cash flow from day one
Less than a year after closing, investors had received 77.2 percent of their original contributions back while keeping their full ownership stake.
The property has cash flowed from the start, and investors continue to receive quarterly distributions.
Doing good while doing well
Camino Verde Group invests in workforce and attainable housing in secondary and tertiary markets. Learn about current and future investment opportunities.
Investment Disclaimers
At Camino Verde Group, we are committed to providing transparent and accurate information about our real estate investment opportunities. Please review the following before making any investment decision.
Risk. All investments involve inherent risks, including the potential loss of principal. Past performance is not indicative of future results. Investors should understand the risks of real estate investments and consider their risk tolerance before investing.
Diversification. Diversification is important for managing risk. Investors should consider diversifying across asset classes to reduce overall risk exposure.
Liquidity. Real estate investments are typically illiquid and usually have restrictions on redemption. Investors should be prepared to hold for an extended period and consider the impact of illiquidity on their financial goals.
Regulatory compliance. Camino Verde Group operates in compliance with applicable laws and regulations governing real estate investments. Investors should understand the regulatory environment and its potential impact on their investment.
If you have questions or would like further clarification, please contact us.
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