Development
Lakeshore adheres to a strict development criteria where the projected stabilized value is 20% above the projected return on cost. From 2018-2021 there was an opportunity to develop luxury apartments in high-growth submarkets and make outsized profits from low capitalization rates and a low interest rate environment.
Transaction Summary
2018-2021 created best in class investment and development group that partnered with PropTech firm, Prescient.
Initiated development of assets located in growth markets of Nashville and Denver, with a projected cost of $350 million
Investment Rational
Adhere to strict development criteria where the projected stabilized value is 20% above stabilized return on cost
Opportunity to make outsized profits from a low capitalization rate and low-interest rate environment with strong demand for luxury rental apartments in higher growth markets
Further reduce development costs by implementing state-of-the-art technologies
Partner with landowners, developers and/or contractors to build in most select sites
Results
Created 4-person development team
Two projects, 600+ units, costing over $250 million were completed, with a $500million pipeline.
Levered IRRs exceeded 20%, with over 2.0x multiple of investment capital