Our Real Estate Experience
Past Projects / Case Studies
Sandridge / Oakridge
Hold Period: 16 months
IRR: 58%
Multiple: 3.96
Sandridge (48 units) and Oakridge (52 units) were purchased together. Workhorse Partners (WHP) and The Ritchie Group Co-sponsored the deal.
WHP sourced the deal, raised the equity, guaranteed a bridge/construction loan, and supervised the construction of the project.
WHP spent over $30,000 per unit in major renovations including seismic upgrades to code, opening the floor plans, new quartz countertops, new cabinets, new flooring, and new plumbing and electrical fixtures.
The beginning rents for 2-bedroom units at purchase was $800 and when sold were at $1,375. The IRR for investors was over 50% and the multiple was 3.97.
Greenhill
Hold Period: 48 Months
IRR: 29.89%
Multiplier: 2.7
Greenhill, located in “B” area of Riverdale, Utah, constructed in the 1970s is a 103-unit apartment purchased April of 2015. At the time of the purchase, rent for a two bedroom was at $550/unit and lots of police calls etc. WHP took over the property, fully remodeled half of the units and did a facelift for the balance. There was vacant land on the site which WHP separated from the rest of the project (all new parcel) thus, allowing space for an additional 44 units. The ownership sold the property and doubled investors’ money in less than three years. The turnaround of this property was amazing. What once was a challenge for Riverdale City is now a high performing apartment community.
Creekside Oaks
Still Holding: 8 years
IRR: 27%
Multiplier: 4.8
Creekside began as a 20-unit apartment property consisting of two 1970s mansard roof style 10-plex 2-bedroom townhouses. At the time the owner was managing it himself; rents were low, the police were frequently at the site, maintenance was a nightmare, and the owner just wanted to get rid of the property and the management. In 2014 he came to Workhorse Partners (WHP) asking them to help sell the property. WHP noticed that there was a large open lawn area on the site. WHP convinced the owner to abandon the sell and team up via a JV with WHP. Pitched roofs were installed on the two 10-plexes and an all new 24-plex was constructed. The entitlement took time as usual; a construction loan arranged, and the property was modernized into a very nice 44-unit apartment. What began as a two-bedroom 1.5 bath townhouse having rents at $600/month is now a 44-unit modern property having rents ranging from a one bedroom at $1,220 per month and three bedrooms renting at $1,700 per month. The ownership recently turned down an
offer for $13.5 million.
AP1 Lofts
Holding Period: 10 Years
IRR: 12.79%
Multiplier: 2.66
This property, located in an opportunity zone, was purchased Oct 2022 as a vacant 5 story office building; current zoning allowed residential or apartments as a permitted use. There are two restaurant tenants on the first floor and 73 apartments to be constructed in stories two through five.
The location (A+) is in the heart of downtown Salt Lake City and achieved the highest "walkable" score possible. Highlights include an unusual 1.16 parking stalls/unit, fitness center, year-round hot tub, dog wash, dog park, bike storage, community/ game room, conference room, washer dryer in each unit, quartz counter tops and unusual views.
AP1 Lofts is into its 3rd month of leasing and has achieved 27% occupancy. The property will reach full stabilization the fourth quarter of 2024. Its location is the compelling reason for the faster than normal lease-up.
Interest rate increases has lowered the multiplier about 70 bps.
Classic Lodge
Holding Period: 32 Months
IRR: 18.74%
Multiplier: 1.6
Classic Lodge was a converted motel into a 120-unit studio apartment property located in Evanston Wyoming. WHP, as co-sponsor, took over the property with only 48 units occupied and paying just $295/month rent including utilities. Over the next 15 months and with a small remodel loan from a local bank, all the windows were replaced, many of the appliances replaced, added an internet system, replaced many of the floor coverings and resurfaced most of the bath surrounds and countertops. The challenge was finding and keeping a good manager. When the property was sold (3-year hold) the investors ended up with 1.6 multiple The occupancy was at 95 units renting at $405/month.
Parkview Lofts
Holding Period: In Construction
IRR: TBD
Multiplier: TBD
Parkview Lofts is a 24-unit adaptive reuse (from a 35,000 square foot office building to 24 apartments). The project is about 75% leased. Its most attractive features include almost 2 parking spaces per unit, a fitness center, a small community room and very high-end interior finishes. Parkview Lofts is also a good condo conversion candidate so that option is being considered.
Bridger Pointe
Hold Period: Long Term 15 years
IRR: 26.8%
Multiplier: 25
Bridger Pointe, a 113-unit apartment was a ground up development using a HUD 221(d)(4) loan. Workhorse Partners teamed up with International Development Group (IDG) where WHP and IDG worked together to locate the property, raise the equity, secure the entitlements, do the construction, and finally complete the lease-up. The property has been refinanced several times and each time additional distributions have been made to investors. It is now performing very well providing excellent cash flow for the investors.
Wasatch Pointe
Hold Period: Long Term, 10+ years
IRR: 17.35
Multiplier: 3.2
Wasatch Pointe, located adjacent to Bridger Pointe, is a 99-unit, senior (55 and old), multifamily ground-up development. WHP and IDG teamed up again (see Bridger Pointe) where WHP and IDG worked together to locate the property, raise the equity, secure the entitlements, do the construction, and finally complete the lease-up. The property has been refinanced several times and each time additional distributions have been made to investors. It is now performing very well, providing excellent cash flow for the investors. Since this was a senior property the lease-up took an extra 3 months.
Residence at South Temple
Hold Period: Under Construction
IRR: Pro Forma 17.3%
Multiplier: TBD
Residence at South Temple is the second of two properties that WHP and The Ritchie Group (TRG) have teamed up to develop. This purchase closed April 8, 2022. WHP “sourced” the deal and worked with TRG to complete the entitlements, secure the Contractor, arrange the construction loan and obtain the equity. This is a very high end 119-unit apartment property. Forty of the units are part of an adaptive reuse (from office to apartments) and 79 of the units will be a “ground-up” tower type property.
Value Add Properties as a Manager
Harrison Heights
Harrison Heights was a 33-unit 3 bedroom 2 bath student property located adjacent to Weber State University. At the time WHP began the management the rent/bed was $250 with lots of delinquencies. There was a major remodel of the entire property and when WHP left the property enjoyed an excellent reputation at an occupancy of 95% and rent per bed was over $400.
- 33 Unit
- 3 Bedroom Student Property
- Rent: $400 monthly, per bed
Cadence (Royal Gardens)
Cadence (Royal Gardens) is a 100-unit property that is currently going through a value-add renovation and is supervised by Nxt Property Management. Over less than a year the rents have grown by over $100 with some face-lift type upgrades. After upgrades the rents will exceed $1,100/unit plus water sewer, trash, parking, etc.
- 100 Units
- Rent: $1,100
Mountain View at Riverdale
Mountain View at Riverdale was an 80-unit apartment with small 835 square foot two bedroom with rents at $690/month. The ownership, at WHP’s recommendation, decided to add side-by-side washer dryer hookups, do a face lift on the kitchens, add a pantry and install new light fixtures. The washer dryer hookups had to be completed three and four units as a time that were stacked. Over the next 12 months the washer dryer hookups were installed with the residents living in the units. Rents went from the $690 to $990 at the time WHP left the project in 2015.
- 80 Units
- 2 Bedrooms
- Rent: $990
Mountain Run and Monarch Meadows
Mountain Run (114 units) and Monarch Meadows (248units) are properties currently undergoing a renovation by Nxt Property Management.
Development Consultant
Tower View
Tower View is a 144-unit apartment development in the downtown area of Ogden. WHP played a major part in getting it entitled, obtaining a significant RDA contribution from Ogden City and Weber County and was the procuring cause of the joint venture equity partner.
Kays Crossing
Kays Crossing is a 150-unit apartment located adjacent to a light rail station. WHP raised the money for this development as well as participated with the ownership through the entitlement process.
HUD Development
WHP developed and owned a major part of Bridger Pointe Apartments, a 113-unit apartment property in Logan UT, financed under 221d4 new construction program. WHP has refinanced several properties under the 223f program.