At a Glance

Location: Clarksville, TN

Units: 112

Hold Period: 4 years

Net Realized IRR: 44%

Net Equity Multiple: 4.76x

Case Study

Beechwood Holdings acquired The Reserve at Royster, a 112-Unit, garden-style apartment complex in 2018.  Upon acquisition, Beechwood implemented a business plan consisting of interior and exterior renovations and operational improvements.

The original interiors had not been improved since development and needed to be updated to reflect market trends.  Interior renovations consisted of new carpet, new paint schemes, replacing dated appliances with newer models, painting cabinets, and replacing ceiling fans and light fixtures.  The updated interiors provided a more desirable living experience and allowed for much higher asking rents.   

Average rents at the property under previous management averaged $675 for two bedroom and one bath units.  At the time of sale, average in-place rents grew to $1,075.  Beechwood brought in professional third-party property management to achieve our stated goals.  

Our actual performance dramatically outperformed our underwritten assumptions.  After a successful exit, we were able to deliver a 44% Net IRR and a Net Equity Multiple of 4.76x to our investors.