Further Demonstrating Strong Demand for Housing Continues
Investors Capital Group (ICG), a boutique multifamily investment firm headquartered in Seattle, Washington, has recently sold the final three properties in their ICG Apartment Fund 2018, completing an investment cycle that shows a continuing demand for housing even amongst economic and global uncertainties.
ICG Apartment Fund 2018 originally acquired five apartment communities in 2018 and 2019 for a collective purchase price of $140,600,000. The Fund placed $61,000,000 in investor equity in the portfolio, which totaled 1,012 apartment units. The five projects were sold for total sales proceeds of $239,350,000. The first two properties were sold in previous years, returning all original investor capital in the process along with some profit, meaning the proceeds from the recent 2024 sales were all gains.
“The 2018 Fund exceeded our year-10 value projections in less than 6 years, which made a compelling case to unwind the investment,” Mike Christian, ICG Managing Member and Director of Asset Management, said. “Additionally, we benefited from strong investor demand as we listed the properties in the first quarter of 2024 when very little product was coming to market at that time.”
Collectively the three properties that closed in 2024 were acquired for a combined $71,350,000 and sold for a total of $122,750,000.
The three properties included:
- 72-unit Citra Apartments (formerly known as Juniper Meadows), in Phoenix, AZ, which closed on April 30, 2024.
- 288-unit Falls at Canyon Rim Apartments, in South Ogden, UT, which closed on May 30, 2024.
- 168-unit Eagles Landing Apartments in Ammon, ID, which closed on June 4, 2024.
The sales allowed investors in ICG Apartment Fund 2018 to go full circle on the investment in just under 6 years. Investors realized attractive investment returns, including just over 19% IRR and a simple annual return of approximately 34% per year on their invested capital. The annual cash yield on invested capital averaged over 8%.
The Fund exceeded original underwriting expectations as ICG was able to apply its strong management expertise to improve operations. During ICG’s ownership period, Net Operating Income growth at the three properties that were liquidated in 2024 averaged approximately 10%, 13%, and 18% per year, at Citra, Falls at Canyon Rim, and Eagles Landing, respectively.
About Investors Capital Group (ICG)
ICG is a Seattle-based real estate investment firm that focuses on opportunistic acquisitions and quality management of multifamily residential properties across the Western United States to provide attractive returns for accredited investors.
With over two decades of experience, ICG has purchased more than 18,000 units with a cumulative value exceeding $2 billion. The firm is rooted in a philosophy of adding value to acquisitions, building strong relationships with investors, providing quality-managed properties, and adhering to conservative underwriting and financing principles to preserve capital and deliver above-market returns through diverse economic cycles.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723176125/en/
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Matt Yemma
Managing Director
Lyceus Group
myemma@lyceusgroup.com
909-633-9396
