Stonegrove Multifamily — Houston
Type: Real Estate
- Asset Class: Real Estate — Multifamily
- Location: Fall Creek (Houston submarket)
- Role: Common equity (partnered with Dallas operator)
- Status: Exited
- Hold: 14 months (Apr 29, 2021 → early Jul 2022)
- Result: 117% net IRR | 2.8x net equity multiple
Executive Summary
In April 2021, 272 Holdings invested $500,000 (~5% of equity) to acquire and reposition Stonegrove Fall Creek (322 units) for $48.4M. The plan focused on rent growth, better tenant quality, and lean operations with a seasoned local partner. We exited in July 2022, well ahead of the 3-year target, achieving top-quartile returns.
Thesis
- Value-add upside from rent increase and expense controls
- Submarket fundamentals supportive of occupancy growth
- Experienced operating partner with proven Texas multifamily track record
Execution
- Re-tenanted delinquent units; raised occupancy to ~95% in Year 1
- Increased average rents by 6%
- Maintained expenses below budget; improved day-1 NOI trajectory
Realized Returns
- Initial Equity: $500K → Distributions: $1.4M
- Net IRR: 117% | Net EM: 2.8x | Hold: 14 months