In November 2016, Encore acquired Encore Tessera, a three- and four-story Class-A multifamily development, comprising 240 residential units on 6.6 acres outside of downtown Phoenix, Arizona, a designated opportunity zone. Total capitalization of the investment was $49.0 million with $11.5 million of invested equity. Encore sold the property ahead of the budgeted five-year hold in May 2021 for $70.0 million, or $27.9 million in equity proceeds.

The property sold to a major institutional real estate investor for approximately $10 million more than initially modeled prior to development. Earning approximately $292,000 per unit, the property netted $50,000 more than the per unit average for comparable sales within the submarket. The property achieved 16.1% deal-level IRR with an equity multiple of 2.0x. Encore’s expertise and industry network created a competitive advantage in managing and exiting the property during an otherwise challenging macroeconomic environment.


net IRR
to LPs


net MOIC
to LPs

4.5 yrs


Encore’s expertise and industry network created a competitive advantage in managing and exiting the property:

  • Land acquisition advantage through strong relationships with local land brokers; deep local network supporting project completion.

  • Staying power to withstand contractor volatility following a 16-month delay due to Native American artifacts and remains found on site.

  • Reached stabilization in just over a year despite entering lease-up in Q1 2020, as a pandemic-related contraction set in across the industry.

  • Overcame challenging development hurdles to create considerable value for investors by attracting institutional interest in its high-quality product.

Past performance is not indicative of future returns. IRR (Internal Rate of Return) and MOIC (Multiple of Invested Capital) represent deal-level returns and do not reflect returns to any individual investor. Total hold represents Encore’s investment hold period and does not necessarily reflect an individual investor’s investment duration. Deal-level IRR represents the total aggregate internal rate of return of realized investment. Deal-level equity multiple represents the total aggregate return of all distributions through the life of the assets over the total equity invested. Deal-level returns do not reflect the deduction of certain fees and expenses. The Gross IRR and Equity Multiple presented do not represent a return to an individual investor and investor returns may be lower due to the General Partner’s promoted interest. ​