Hamilton Point Fund Nets $9.6M Profit on Another Oklahoma Asset
The recent sale of Yukon on 15th in Oklahoma City, Okla., marks the seventh full-cycle transaction for Hamilton Point Investment’s HPI Real Estate Fund VIII.
Hamilton Point is a real estate investment company founded in 2009. With 350 employees nationwide, it has acquired nearly 35,000 apartment units for some $3.5 billion.
Representing a 56% increase in less than four years, HPI Real Estate Fund VIII acquired the Oklahoma asset in May 2021 for $17.1 million, or $85,500 per unit, and sold it for just over $26.7 million, or $133,575 per unit.
“The property was originally built as affordable housing, requiring rents below market for 15 years,” Todd F. Williams, senior vice president of sales and marketing at Hamilton Point Investments, told The DI Wire.
“HPI acquired the asset shortly after it was released from the rent-restriction period. We were then able to upgrade the property – both physically and in terms of tenant credit quality – allowing for increased rents and value,” he said, noting that positive outcomes for investors is Hamilton’s goal.
According to the company, the property was 96% occupied at the time of purchase, and that occupancy was maintained at the time of sale. The net operating income was approximately $832,584 at the time of purchase and more than $1.52 million at the time of sale. This was upwards of an 82% increase.
In total, HPI Real Estate Fund VIII raised approximately $115 million and acquired 12 multifamily assets. The sale of Yukon on 15th represents the seventh profitable full-cycle transaction for the fund and Hamilton Point’s 90th full-cycle property disposition since inception. Each of the 90 asset sales have been highly profitable, according to Williams.
In October 2024, Hamilton Point’s sale announcements included HPI Real Estate Fund VIII’s Tinker at Forty8, a 152-unit multifamily property in Oklahoma City for nearly $14.3 million; Edmond at Twenty500, a 160-unit multifamily property in Edmond, Okla., for $21 million; and The Den, a 158-unit student housing apartment property located in Columbia, Mo., for $27.5 million.
Over the summer, Hamilton Point announced the close of HPI Real Estate Fund XII LLC. Launched in March 2023 seeking to raise up to $150 million from accredited investors, the fund ultimately raised $196 million through 32 independent broker-dealers and 18 registered investment advisers. The equity was invested in eight multifamily properties totaling 2,118 apartment units.
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