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Hamilton Point Multifamily DST Goes Full-Cycle, Generates 20% Net IRR

Hamilton Point Investments LLC, a sponsor of alternative investment offerings, sold HPI Garden Park DST, an offering comprised of a 246-unit multifamily community located in Fayetteville, Arkansas. The property was sold to an unnamed buyer for $17.5 million.

HPI Garden Park DST was syndicated to 1031 investors in March 2013 at a total capitalization of $14.9 million. The property provided investors with a 1.61x multiple on their investment, including distributions.

“We felt it was the right time to sell as the property was 99.2 percent leased, cap rates had compressed in the market, and over 1,100 new apartment units are coming on line this year,” said David Kelsey, co-founder and managing principal of Hamilton Point Investments. “We felt we could maximize IRR for our investors and protect them from downside market risk.”

The sale of Garden Park is the first full-cycle Delaware statutory trust program for Hamilton Point Investors.

As the DI Wire reported yesterday, the company recently purchased Cambridge Apartments in Gulfport, Mississippi for $12.4 million on behalf of a real estate private equity fund sponsored by the company.

Hamilton Point Investments LLC is a real estate investment company that owns and manages multifamily apartment properties. HPI invests through a series of real estate private equity investment funds and 1031 exchange DST programs. To date, the company has sponsored four real estate funds and five DST offerings. HPI has acquired more than 7,000 apartment units since 2009.

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