SOLD: ENCORE VIVE APARTMENTS

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.

60.7%

net IRR
to LPs​

2.7x

net MOIC
to LPs​

2.0 yrs

total
hold​

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:

  • Superior site selection based on the area’s rapid population growth, solid forecast for future apartment demand, and accessibility to desirable recreation via three major thoroughfares

  • Efficient construction methodologies facilitated early completion, avoiding pandemic-related delays and cost overruns common in 2021 due to national supply-chain and labor disruptions

  • Set the fastest leasing pace in Encore’s history, with 35 units absorbed per month at elevated rental rates, fueled by robust demand for Encore’s high-quality product

  • Optimally-timed exit to take advantage of strong market pricing in the region, resulting in a sale that outperformed Encore’s initial projections

Past performance is not indicative of future returns. Market data sourced from CoStar Multi-Family Submarket Report: Central Lee County; Fort Myers, FL as of December 2021. 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 net IRR represents the total limited partner internal rate of return of realized investment net of fees and expenses. The net equity multiple represents the total limited partner return of all distributions through the life of the assets over the total equity invested net of fees and expenses. The IRR and equity multiple presented do not represent a return to an individual investor.