Another Origin Win: 40% IRR and a 2.6x Multiple

Topic:  • By Origin Investments • June 21, 2016 Views

Origin recently sold Arium North Point, an apartment complex located in Atlanta, for $26.75 million, almost double the $14.1 million purchase price.

Our investors in Funds 1 and 2 achieved a 2.6x gross multiple and an annualized internal rate of return of more than 40% over the roughly 3 ½-year hold period.

When Arium was purchased in December 2012, Origin projected a 16.5% gross IRR and a 1.95x gross multiple over a 5-year hold. We beat our original IRR projection by more than 240%. We beat the multiple by more than 33%. And we executed the business plan 30% faster than we’d projected.

Arium-North-Point

At Origin, we have a saying, “Projections are always wrong.” What really defines one investment manager over another is the direction in which it is wrong. To date, 96% of our fund investments have outperformed pro forma. We are currently achieving a 25.4% annualized net return across 27 assets, compared to a 16% projected return profile.

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Funds 1 and 2 have benefited greatly from our expertise and disciplined risk-management practices. We already have raised more than $55 million for our third fund, which will target opportunities like Arium North Point. Click below to learn more and to see how you can participate.

Here’s how Origin has performed in other recent deals.

Initial ProjectionsRealized
IRRMultipleHold Pd.IRRMultipleHold Pd.
Lux24 Apts.18.3%2.1x60 mos.57.5%3.1x33 mos.
Giordano’s Retail26.2%3.0x60 mos.56.1%4.5x41 mos.
Food 4 Less Retail17.6%2.0x60 mos.37.1%2.6x35 mos.
Marquis Crest Apts.26.6%2.2x60 mos.27.0%2.2x43 mos.
Arbor on Richmond19.7%1.7x36 mos.26.7%2.2x58 mos.

Don’t miss out on future success stories like Arium North Point. Schedule a personal call today with our Vice President of Investor Relations Ben Harris to discuss investing in Fund 3. All of our offerings are IRA eligible.

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Origin Investments

Origin Investments is a top-ranked real estate firm committed to educating investors on private equity commercial real estate.