DALLAS - June 24, 2022 - (Newswire.com)
Dallas-based Vive Funds is pleased to announce its latest exit of a multifamily property located in Marietta, Georgia. The project successfully generated strong returns for its investors, with the equity multiplier reaching ~1.8 in just 19 months.
The real estate investment fund was able to exit the property in a mere 19 months despite an initial business plan of five years.
Before beginning the project, the Vive Funds team projected returns within the 14-15% IRR range. In actuality, the internal rate of return (IRR) is closer to 45%, with continued potential for growth. The average annual return (AAR) on the property was ~50% within this short time frame, far exceeding the expected 15.31% on proforma.
"Vive Funds is excited for the opportunity it provided for investors within the Marietta and Atlanta submarket on this property. Yielding average annual returns of more than 50% is a big win for our passive investors and definitely impressive in the growing Atlanta MSA," said Veena Jetti, founder of Vive Funds.
Located in the highly desirable and affluent area of the Marietta submarket, where the median house value is over $400,000, this asset provides residents with quick access to Life University, Kennesaw State Marietta Campus, as well as local shopping, retail, and entertainment establishments.
Rent growth in the submarket was above 5% during 2019, outperforming Atlanta as a whole and recording 4% rent growth. Looking forward, the Marietta submarket is expected to see rent growth of over 3% in the next 12 months.
Built in 1988 and housing a total of 494 units less than one mile away from I-75, the property consistently collected over 94% of rent payments throughout the peak periods of the COVID-19 pandemic. Since then, rents have continued to grow; the last 10 leases have averaged $1,094 overall and $1.29 PSF (price per square foot) — 9% higher than the rent prices on a per square foot basis. The property is also located within the prestigious East Cobb County school district.
According to data from Norada Real Estate Investments, home prices skyrocketed in 2021, and the same trend is expected to continue in 2022. The median price of a home sold in the 11-county area was $375,000 in January 2022. Per the Atlanta Realtors Association, this price is 23% higher than the median price of last January and 0.5% lower than the median price of the previous month.
With Atlanta's third-quarter demand tally of 9,008 units accounting for 87% of the market's annual absorption in the year-ending September, as well as property management software provider Realpage calling Atlanta a "booming multifamily market," the rising popularity of the city is simply indisputable.
The Zumper Atlanta Metro Report found that Marietta had the fastest-growing rent, up 23.4% since this time last year compared to the other cities in the Atlanta metropolitan area, and the Georgia market was even able to secure the nation's top spot for apartment demand.
Vive Funds is a multifamily real estate investment firm that provides investors the opportunity to diversify their portfolios and generate strong returns by investing in properties across key markets. For more information about Vive Funds and its investor-centric approach, please visit https://vivefunds.com.
About Vive Funds
Vive Funds was launched to fulfill our mission of carefully curating high-quality real estate investments. Our innovative strategy and our detailed process drive our core value of investor-centric projects. Vive has developed a rich network of global business partners to make early and transformational investments in assets that have the potential to do great things.
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Original Source: Vive Funds Exits Atlanta Multifamily Investment Property, Yields Strong Return for Investors in a Record 19 Months