DALLAS, June 24, 2022 (GLOBE NEWSWIRE) — Dallas-based Vive Funds is pleased to announce its latest exit from a multifamily property located in Marietta, Georgia. The project has successfully generated strong returns for its investors, with the equity multiplier reaching ~1.8 in just 19 months.
The real estate investment fund was able to exit ownership in just 19 months despite an initial five-year business plan.
Prior to starting the project, the Vive Funds team expected returns of between 14-15% IRR. In reality, the internal rate of return (IRR) is closer to 45%, with continued growth potential. The property’s average annual return (AAR) was around 50% in this short time, far exceeding the 15.31% expected on the pro forma.
“Vive Funds is thrilled with the opportunity it has provided investors in the Marietta and Atlanta submarket on this property. The average annual yield of over 50% is a big win for our passive investors and certainly impressive. in the growing MSA of Atlanta,” said Veena Jetti, founder of Vive Funds.
Located in the highly desirable and affluent area of the Marietta submarket, where the median home value is over $400,000, this asset offers residents quick access to Life University, Kennesaw State Marietta Campus, as well as the local businesses, retail and entertainment establishments.
Rent growth in the submarket was over 5% in 2019, surpassing Atlanta as a whole and recording rent growth of 4%. Looking ahead, the Marietta submarket is expected to experience rent growth of over 3% over the next 12 months.
Built in 1988 and home to a total of 494 units within a mile of I-75, the property has consistently collected over 94% of rent payments throughout peak periods of the COVID-19 pandemic. Since then, rents have continued to rise; the last 10 leases have averaged $1,094 and $1.29 PSF (price per square foot) – 9% more than rental prices per square foot. The property is also located within the prestigious East Cobb County School District.
According to data from Norada Real Estate Investments, home prices skyrocketed in 2021 and the same trend is expected to continue in 2022. The median price of a home sold in the 11 county area was $375,000 in January. 2022. According to the Atlanta Realtors Association, this price is 23% higher than the median price of last January and 0.5% lower than the median price of the previous month.
With Atlanta’s third-quarter demand tally of 9,008 units representing 87% of annual market uptake as of the end of September, as well as property management software provider Realpage calling Atlanta a “booming multi-family market boom”, the growing popularity of the city is simply indisputable.
The Zumper Atlanta Metro Report found Marietta had the fastest growing rent, up 23.4% since this time last year compared to other cities in the Atlanta metro area, and the Georgian market. was even able to secure the number one spot in the country for demand for apartments. .
Vive Funds is a multi-family real estate investment firm that offers investors the opportunity to diversify their portfolios and generate strong returns by investing in properties in key markets. For more information about Vive Funds and its investor-centric approach, please visit https://vivefunds.com.
About Vive Funds
Vive Funds was launched to fulfill our mission of carefully selecting high quality real estate investments. Our innovative strategy and detailed process drives our core value of investor-centric projects. Vive has developed a rich network of global business partners to make early and transformational investments in assets that have the potential to do great things.
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