In December 2020, The Lynd Group bought Village at Lionstone in Colorado Springs, Colorado, for $46.750 million. Two years later, after making $4 million in renovations and upgrades, it sold the asset for $67.5 million.
“We hit our investment objective three years sooner than expected,” said Adam David Lynd, president and CEO of Shavano Park, Texas-based The Lynd Group.
The company wasn’t forced to sell. “We had long-term, fixed-rate debt,” Lynd said. “We could have just held it.”
But the opportunity to sell the 288-unit, garden-style apartment community after Lynd hit its investment goals ahead of schedule was too good to pass up. The firm achieved a 31.5% internal rate of return for investors and an equity multiple of 1.8 times.
Village at Lionstone, built in 1984, offers one-and two-bedroom units averaging 670 square feet and 970 square feet, respectively. Lynd upgraded 200 units with stainless steel appliances, white quartz countertops, cabinet modifications, vinyl flooring replacements, backsplash tile installation and new light and plumbing fixtures. With those improvements, rents increased as much as $599 per month on the premium units.
Lynd also revamped the clubhouse with a redesigned fireplace and Amazon package room. The company upgraded the pool with a pergola and lounge area, outdoor BBQs, a turf installation and a new fire pit. It also added a mountain bike rack and a new dog park.
“Lionstone presented us with an opportunity to execute on our value-add construction program and utilize our management expertise to bring the property up to contemporary standards to create a better living experience for residents,” Constantine Scurtis, Lynd’s chief investment officer, said in a press release shared with Multifamily Dive.
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