MONTGOMERY, AL - Elevation Financial Group, a provider of multifamily and senior affordable housing, announced the sale of Elevation Real Property Fund V asset, Serenity Apartments at the Park. The 176-unit multifamily property located in Montgomery, Alabama, sold for $5.28 million.
With this sale, Fund V experienced a healthy profit reflective of Elevation's initial acquisition having a very low basis, as well as the Fund's success in repositioning the asset to be worth several million dollars more. In spite of the market turmoil around coronavirus, Elevation was able to attract strong sub-market pricing per unit (nearly $11,000 more than per unit acquisition pricing) and bring the asset to closing.
"In the midst of a national pandemic and an economic nightmare for market investors, Elevation is delighted to have delivered once again with its sale of Serenity Apartments at the Park in Montgomery, Alabama. This workforce housing property required a tremendous level of commitment by Elevation management to deliver on its promise to residents and investors, " said Chris King, CEO of Elevation Financial Group. "I am proud that we turned over a full property to the new buyer and produced a strong profit for our investors, at a time when they need a little good news. To an investor community that has stood beside us faithfully, thank you for giving us the opportunity to serve you in good times and in bad times. As Elevation was birthed during the great recession, I have always believed that we have been equipped to do some of our best work during the hardest economic times."
During the time of ownership, Elevation completely revitalized the community and made a number of value-add enhancements. One addition was Serenity Park, an expansive outdoor area for families and children. It was quickly recognized during the initial purchase that the outdoor space where families and children spent time was deteriorating and unsafe. Making this area safe again was a priority, but Elevation took it a step further and added a large playground, picnic areas with canopies, a soccer field and walking track. Serenity Park provided a place for children to play and families to bbq, picnic and exercise.
Additional enhancements include the rehabilitation of over 75 units, exterior painting and landscaping, the installation of water conservation kits in all of the units and a leasing office renovation.
Serenity Apartments at the Park represents the fifth property sold for Fund V with one asset, Serenity Townhomes at Montgomery, still remaining in the portfolio.
The past six months have been very active for Elevation with four properties sold and nine apartment communities purchased. The company also expanded into Virginia, Illinois and Indiana with the acquisition of multiple 55+ independent senior properties. In addition, Elevation recently closed on its seventh and largest fund, The Apollo Fund, which raised more than $43 million.