$8.3 Million Sale of Minneapolis Apartments

May 2017

FIDES Investment, LLC (“FIDES”) announces the sale of El Capitan and Granada, two vintage rehab properties totaling 52 units located in the heart of Uptown Minneapolis. FIDES joint ventured with CPM and a privately held investment firm.  The properties were purchased in September 2014. The sale price equated to $160,000/unit.  The average property level return equated to a 17% IRR and a 1.6x multiple. “Our strategy was to improve unit interiors, common areas and rebrand both properties to offer a mid-priced ‘upgraded vintage style’ floor plan that was not available in the Uptown market.  At time of acquisition, the sub-market consisted of expensive brand new and lower cost un-renovated vintage buildings. Approximately 40% of the apartment units were renovated along with common areas which translated into a total revenue increase of approximately 37% from takeover to disposition.    The A+ location of these properties along with the unique upgraded vintage product offering were key components in the success of this investment,” said Gregg Handrich of FIDES.  FIDES oversaw the acquisition, renovation, asset management and sale process for the venture.

$9.0 Million Sale of Illinois Apartment

March 2017

FIDES Investment, LLC (“FIDES”) announces the sales of Park Crossing, a 32-unit apartment building located in Downers Grove, IL, and Maple Park, a 34-unit apartment building located in Naperville, IL.   FIDES joint ventured with a privately held investment firm that purchased the properties in January 2014.   The recent sale price was just under $140,000/unit.  The property level return equated to a 20% IRR and a 1.7x multiple. “Our strategy was to improve the curb appeal and unit interiors of the properties in conjunction with installing professional on-site management.   Additionally, we felt that property rents at acquisition were significantly below comparable properties.  Approximately 60% of the apartment units were renovated along with common areas at an approximate cost of $13,650/unit, which translated into rental rate increases of approximately 30% from takeover to disposition.    The strong location of these properties coupled with the renovation program provided our investors with attractive risk-adjusted returns,” said Gregg Handrich of FIDES.  FIDES oversaw the acquisition, renovation, asset management and sale process.

$6.35 Million Value-Add Apartment Sale

March 2017

FIDES Investment, LLC (“FIDES”) announces the sale of Geneva Park, a 56-unit apartment building located in Geneva, IL. FIDES joint ventured with a privately held investment firm that bought the failed condominium conversion in October 2013 in a short sale transaction simultaneously with the individual purchase of the previously sold condominiums.   The recent sale price was just under $115,000/unit.  The property level return equated to a 19% IRR and a 1.7x multiple. “Our strategy was to convert the failed condominiums back to apartments and significantly renovate the property and improve onsite management.  Within the first year of ownership, we encountered 75% unit turnover and undertook a full-scale renovation program.   Approximately 60% of the apartment units were renovated along with common areas and amenities at an approximate cost of  $15,000/unit, which translated into significant rental rate increases.   The end result was top-line revenue growth of approximately 40% from takeover to disposition.   Although the transformation of the property from a failed Class C condominium conversion to a Class B apartment asset was time consuming and at times challenging, it provided our investors with an attractive risk adjusted return,” said Gregg Handrich of FIDES.  FIDES oversaw the acquisition, renovation, asset management and sale process.

Land Acquisition for Development

November 2016

FIDES Investment, LLC (“FIDES”) announces its tenth joint venture with a high net worth family office for the acquisition of a land parcel slated for development in downtown Highwood located at the SW corner of Green Bay Road and Washington Avenue.  The parcel, which was previously improved with a restaurant, is strategically located in downtown Highwood and just two blocks from the Metra commuter train station and all the downtown retail, restaurants and other amenities.   The site boasts a very strong walk score of 79.    Before closing on the parcel, FIDES rezoned the property which is now approved for a 4-story 28-unit luxury apartment building.  Additionally, FIDES worked closely with the village to obtain TIF financing to offset some of the infrastructure costs. “This off-market transaction represents a very unique investment opportunity when coupled with the increased density and TIF financing,” said Gregg Handrich of FIDES.  “Highwood has a tremendous Northshore location and boasts some of the best restaurant options in the area.  The lack of new rental options in this community creates a compelling development opportunity that we are excited to undertake.“  FIDES will oversee the development and asset management for the partnership.

$17 Million Upscale Apartment Sale

March 2017

FIDES Investment, LLC (“FIDES”) announces the sale of Laguna, a 45-unit luxury apartment building located in the heart of Uptown Minneapolis. FIDES joint ventured with a local developer/manager and a privately held investment firm.  The development parcel was bought “off market” in early 2015.  Building construction was completed in May 2016, and the building was successfully leased up in just over 4 months.   The sale price was just under $380,000/unit.  The property level return equated to a 31% IRR and a 1.8x multiple. “We were very pleased to be able to develop, lease and sell the asset in just over a two year window.   The high quality location, overall building design and strong sub-market were clearly the main drivers in the strong success of this development,” said Gregg Handrich of FIDES.  FIDES oversaw the sale process.

Acquistion of Vintage Apartments

October 2015

FIDES Capital Partners, LLC (“FIDES”) announces its ninth joint venture with a high net worth family office for the acquisition of a three building portfolio in urban Minneapolis.  The buildings are located in the Whittier neighborhood of Minneapolis and is just minutes from downtown Minneapolis.   The neighborhood is home to the Minneapolis Institute of Art, Minneapolis College of Art and Design, and the Children’s Theatre.  The properties are just two blocks from these neighborhood anchors.  Only a few blocks to the West is Nicollet Avenue which is known as Eat Street due to the many diverse restaurants, coffee shops and Asian markets. FIDES was responsible for sourcing, formulating the asset plan, underwriting and financing the transaction.    FIDES is joint venturing with CPM Property Management on the acquisition to provide local property management and market expertise.   “This off-market opportunity was compelling as it added to our urban vintage base of units in Uptown but also added diversification in terms of a different sub-market” said Gregg Handrich of FIDES.  “We believe this neighborhood has a great deal of upside due to the close in location, the stability provided the college and museum as well as the long range plans to provide light rail along Nicolet to downtown Minneapolis.    We are planning to invest capital to upgrade the unit interiors, exteriors and common areas of the assets as well as a complete marketing overhaul.   The vintage buildings have a great deal of character.  These properties just need to be marketed and managed in a different manner.”  FIDES will asset management the investment and oversee the capital upgrade program.

Acquisition of Multi-Family Land

July 2015

FIDES Capital Partners, LLC (“FIDES”) announces its seventh and eighth joint ventures with a high net worth family office for the acquisition of two land parcels with the potential to develop approximately 50+ luxury apartment units exceeding $13.0 million in total capitalization.   Both parcels are strategically located in the heart of downtown Libertyville and Lake Bluff and within one to two blocks from the Metra commuter train station. FIDES was responsible for sourcing, underwriting, financing and crafting a conceptual development plan for both sites.   “These were off-market opportunities with irreplaceable locations,” said Gregg Handrich of FIDES.  “ Both sites have older existing apartment buildings that rest on sites that are ripe for a higher density development.   The key will be working with the local villages to conceive a development plan that works for both the community and the owner.“  FIDES will  develop and asset management both investments.

 

$13.6 Million Land Acquisition

January 2015

FIDES Capital Partners, LLC (“FIDES”) announces its sixth joint venture on the acquisition of a multifamily land parcel in Uptown Minneapolis.  The site is located in the heart of Uptown and in close proximity to the 407-unit Vintage apartment portfolio that FIDES acquired in September 2014.  The planned 45-unit development will include a parking garage, fitness center and social room.  Construction is expected to start in May 2015.  FIDES is joint venturing with CPM Development which will provide local development and property management expertise.  “The proposed property will provide a nice compliment to our existing portfolio as it will allow us to offer a full range of pricing options to our residents.  Adding units in the same sub-market as our existing properties will also provide greater scale for our property management team,” said Gregg Handrich of FIDES.  “The site is located in the highly desirable Uptown area of Minneapolis and encompasses four older apartment buildings that will be demolished as part of the re-development plan.  Uptown’s future supply is limited, which provides us with a strategic development window as we plan to begin leasing the property in early 2016.”  FIDES will also provide asset management services for the project.

$40 Million Closing

October 2014

FIDES Capital Partners, LLC (“FIDES”) announces its fifth joint venture with a high-net-worth family office on the acquisition of a Minneapolis urban apartment portfolio with a total capitalization of $40.0+ million.   The 11-property portfolio is concentrated in Uptown and Downtown Minneapolis. FIDES was responsible for sourcing, formulating the asset plan, underwriting and financing the transaction.  FIDES is joint venturing with CPM Property Management on this acquisition to provide local property management and market expertise.

“We’ve been working to penetrate the Minneapolis market for the past two years due to the city’s vibrant economy. When this offering hit the market in May, it was clearly the ideal opportunity,” said Gregg Handrich of FIDES.  “The portfolio is primarily located in the highly desirable Uptown and Loring Park areas of downtown Minneapolis and provides an instant multifamily platform in that city.  The previous owner owned the properties for many years and took very good care of these older vintage-style buildings.  But what made the deal extremely appealing was the fact that the prior owner did not invest in unit interiors and kept rents below market to obtain above market occupancy.”

Handrich continued, “The new construction taking place in these sub-markets achieves rental rates that are approximately 75% higher than older vintage product.   We are planning to invest capital to upgrade the unit interiors, exteriors, and common areas of the assets as well as a complete marketing overhaul.   The properties, which were built in the 1920’s, have so much character and charm.  These qualities just need an updated marketing plan.  Currently, residents only have two options in Uptown: brand new residences or older, outdated buildings.  We believe there is an unfilled market to provide an updated classic urban product at pricing which is still substantially below the new product.  Residents want both the location and the charm at a reasonable price”.

FIDES will asset management the portfolio and oversee the capital upgrade program.   FIDES partnered with CPM Property Management who is a local apartment management company based in Uptown that provides a strong and very capable local partner.  “We felt it was important to have a local partner for our initial investment in Minneapolis.   After interviewing a number of local groups, it was clear that CPM was a great personality fit with a strong presence right in the heart of this portfolio.   CPM is a dynamic and very competent partner who we envision partnering with on other opportunities as well,” concluded Handrich.

$7.5 Million Acquisition

January 2014

FIDES Capital Partners, LLC (“FIDES”) announces its second and third joint ventures with a family office client on the acquisition of two apartment properties totaling 66 units with a total capitalization of $7.5 million.  The properties are located in Naperville and Downers Grove, IL.  FIDES was responsible for sourcing, developing the asset plan, underwriting and financing the transaction.  “This is a typical value-add investment for us,” said Gregg Handrich of FIDES “as both properties had complacent property management with rents that were substantially below the competition.  We are planning to invest additional capital to upgrade the interiors and exteriors of the properties, and we will completely rebrand the assets.  Although FIDES was not the high-bidder, the seller was confident that FIDES would close the transaction.”  FIDES will asset manage both properties and will oversee the capital upgrade programs.