LLJ has been successful in delivering above market returns. The average Project IRR for all exited deals is 38.2% and a 2.3x multiple. Achieving such high returns going forward is going to be challenging and more sporadic, however we continue to selectively look for attractive risk-adjusted returns for our investors.
Hotel
September 2011
Wisconsin Dells, WI
Value Add
44%
3.8x
LLJ acquired the distressed Hilton Garden Inn hotel in 2011. After the implementation of our business plan, which included a $1.3 million renovation of the hotel, new professional management, and repositioning of the hotel, we decided the time was right for a sale.
Multifamily
December 2012
Lafayette, Boulder, CO.
Financial Value Add
Still in Portfolio, returned 100% of Equity
LLJ acquired the stabilized Class A multifamily project from a local developer for less than $40 million. The seller wanted to transact as he had shovel ready land but no equity for his new project. Prana was encumbered by an expensive HUD loan that could not be pre-paid before 2 years out. After 2 years we refinanced the HUD loan, returned 100% of the equity and our investors are today enjoying double digit cash on cash returns.
Multifamily
July 2012
Austin, AZ.
Value Add
82%
5.0x
LLJ acquired the note on the property from a local bank, and concurrently negotiated a deed in lieu with the affordable housing operator and owner. LLJ invested more than $1.0 million in capex into the project, and repositioned the property with new management.
Hotel
August 2011
Oakland, CA.
Note Acquisition
62%
1.8x
LLJ acquired two non-performing notes backed by hotels. By working with the borrowers, LLJ got paid in full in one note, and took the other hotel back through a deed in lieu. The property was later sold.
Land (Multifamily)
October 2015
Santa Ana, CA.
Financial Value Add
16%
n/m
LLJ provided bridge financing to the Sponsor to acquire the land and make the project “shovel ready”. The loan was secured by the first lien mortgage and all permits, consulting studies, reports, drawings, plans and specifications, and was paid off by a subsequent construction loan.
Multifamily
July 2012
Mesa, AZ.
Financial Value Add
30.7%
2.03x
LLJ acquired this Class C asset built in 1980 and operated by the same owner. As part of our business plan we fully renovated common areas and exteriors and over 65% of units. The property was stabilized with higher rates and better tenants.