Four Mile Capital Sells in Ft. Collins, CO
Louisville, CO (April 1, 2019) — Four Mile Capital (“FMC”), a privately-held real estate investment sponsor based in Louisville, CO, has sold a 280-unit multifamily property known as the Argyle of Willow Springs (the “Argyle”) in Ft. Collins, CO. The Argyle, built in 1993, was purchased off-market in a joint-venture with MLG Capital in September 2016 for $51,250,000, or $183,035 per unit.
The sale transaction closed March 7, 2019 for $63,500,000 or $226,785 per unit, and the new owner assumed an attractive in-place Freddie Mac mortgage. “We are thrilled with the result of our first FMC exit, increasing property NOI by 21% since our purchase and realizing a 26% deal-level IRR for our investors over 2.5 years,” said Eric Mallon, a FMC founding principal. “This execution also speaks to the overall strength and diversity of the Ft. Collins economy, which continues to drive national interest from investors.”
Since its purchase of the Argyle in 2016, FMC invested over $1.5M to upgrade the clubhouse, pool and unit interiors, in the end delivering a best-in-class amenity package for their residents. “In addition to modernizing the clubhouse and pool area, we added a new outdoor kitchen with pergola, installed Amazon package lockers, and built a new dog park,” said Chris Geer, another FMC founding principal. “We proved the viability of our original business plan, renovating roughly 32% of the units and achieving $125/mo premiums, leaving the next owner in a great position to finish out the project,” continued Geer. The scope of unit renovations included new cabinet fronts, granite overlay countertops, stainless appliances, vinyl plank flooring, carpet and new hardware, at an average per unit cost of $6,500 resulting in a 23% return on investment.
Four Mile Capital continues to pursue exceptional multifamily investment opportunities throughout the U.S, with a specific focus on Colorado, Virginia, Atlanta, Iowa, Wisconsin and Salt Lake City. They employ an opportunistic strategy in acquiring off-market properties that fall below the radar of its institutional peers, targeting investments with a total capitalization between $10MM and $100MM, and between $5MM and $35MM of equity. FMC capitalizes each deal separately with either private equity or high net-worth syndications, creating highly flexible and tailored investment strategies to meet the needs of our various investor groups.
Four Mile Capital was formed in 2016 by three veteran real estate principals: Chris Geer, Eric Mallon and Terry Simone. Collectively, they have been involved in the ownership, acquisition, asset management and property management of approximately 20,000 multifamily units representing over $1B in aggregate value and have proven their ability to identify and unlock asset value by instituting capital improvement programs and best management practices. Learn more about Four Mile Capital at www.fourmilecapital.com.
