In October 2019, Encore acquired land to develop Encore Vive, a four-story, Class A, modern garden apartment community, comprising 288 residential units on 12.8 acres within the Forum, a desirable mixed-use development in Fort Myers, Florida. Total capitalization of the investment was $53.3 million with $19.7 million of invested equity. Encore sold the property more than two years ahead of the budgeted five-year hold in December 2021 for $91.0 million, or $56.6 million in distributable cashflow.
The property sold prior to stabilization for approximately $316,000 per unit, netting nearly $29,000 more than the per unit average for comparable sales within the submarket. Surpassing Encore’s initial projections, the property achieved 62.4% deal-level IRR with an equity multiple of 2.8x.
Encore’s expertise and industry network created a competitive advantage in managing and exiting the property at the opportune time to take advantage of historic activity within the region: