RREAF Holdings Successfully Divests of Multiple Properties in Its Portfolio
RREAF Holdings LLC, a private real estate investment and development firm based in Dallas, today announced the successful disposition of multiple properties in its portfolio. Three separate sales included RREAF's Gulf Coast portfolio, located in Mississippi and Alabama, along with two separate multifamily properties in South Carolina and Oklahoma. These three offerings yielded a 26.7 percent IRR, 19.4 percent IRR and 18.9 percent IRR, providing RREAF investors with an exceptional rate of return that beats market norms.
The Prosper Gulf Coast portfolio, acquired in December 2017, includes four Prosper properties – Prosper Gulfport, Prosper Jackson, Prosper Orange Beach and Prosper Senatobia – for a total of 1,086 units.
Prosper Gulfport is a 426-unit multifamily property in Gulfport, MS. It sits on 18.4 acres with 19 residential buildings and features a clubhouse, fitness center and resort-style saltwater pool with a sundeck.
Prosper Jackson is a 280-unit multifamily complex in Jackson, MS. The gated community sits on 15.9 acres with 30 residential buildings and includes a clubhouse, fitness center, two pools with sundecks, a spa and an outdoor entertainment area.
Prosper Orange Beach is a 300-unit multifamily complex in Orange Beach, AL. The apartment community sits on 50 acres with 13 residential buildings. Community amenities include a fitness center, lake with available fishing, pier with gazebo, boat storage availability and a resort-style pool with a fountain.
Prosper Senatobia is an 80-unit multifamily complex in Senatobia, MS. Senatobia is 30 miles from Memphis and is considered part of the Memphis MSA. The apartment community sits on seven acres with 10 residential buildings. Community amenities include a clubhouse, swimming pool with outdoor lounge, volleyball court, picnic area and resident events.
Equity raised exceeded $23 million and yielded a common equity return of 2.01x and 26.7 percent IRR.
Other successful sales include two separate multifamily properties acquired in 2016 and 2017. The Corners Apartments, totaling 176 units in Spartanburg, SC, with $4.275 million in equity yielded a common equity return of 1.79x and 19.4 percent IRR. Oakwood West Apartments includes 108 units in Enid, OK, with $1.6 million of equity raised that yielded a 2.01x equity multiple and 18.9 percent IRR to the common equity.
"We are thrilled with the performance of these three investments. These exits provide our investors superior returns compared to alternative investment vehicles and other comparable real estate investment offerings alike. We look forward to additional exits soon that produce similar outsized yields," said Kip Sowden, RREAF's chief executive officer.
RREAF Residential provides marketing, maintenance, leasing and other resident services for dozens of properties around the country.
About RREAF Holdings LLC
RREAF Holdings LLC ("RREAF") is a privately held, vertically integrated commercial real estate company based in Dallas, with roots that go back nearly 35 years in the industry. RREAF focuses its portfolio of commercial real estate projects and development under three platforms aimed primarily at catering to the Middle America workforce community: programmatic value-add multifamily acquisition, opportunistic hospitality and resort redevelopment, and core ground-up development. RREAF employs over 300 people, mostly across the South and Southeastern U.S., handling a wide range of commercial real estate investment matters, including in-house underwriting/due diligence, capital markets, acquisition, asset management, property management, construction management, project development, accounting and legal support. RREAF, along with its debt and equity alliances, has built a diversified portfolio in its core competencies in excess of $2 billion and more than 12,000 units over the past five years and expects to continue expanding these platforms. RREAF's mission is to enhance the lives of its investors, partners, property residents and guests by providing outstanding service, excellence and expertise with integrity, vision, values and purpose. For more information, please visit RREAF.com.
THIS PRESS RELEASE SHALL NOT CONSTITUTE OR BE CONSTRUED AS AN OFFER OR SOLICITATION FOR THE SALE OF ANY SECURITY. INTERESTED PARTIES ARE DIRECTED TO THE COMPANY'S WEBSITE, AND SPECIFICALLY TO THE PAGES DEDICATED TO THE SUBJECT TRANSACTION, FOR MORE INFORMATION. THE OFFER OF SALE FOR THE SUBJECT SECURITIES IS AND WILL BE MADE ONLY THROUGH THOSE PAGES OF AND THE OFFERING DOCUMENTS PROVIDED ON THE COMPANY'S WEBSITE.