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 Origin Funds I and II 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. 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. As of this article’s writing, 96% of our fund investments have outperformed pro forma. Origin Funds I and II have benefited greatly from our expertise and disciplined risk-management practices.

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

Initial Projections Realized
IRR Multiple Hold Pd. IRR Multiple Hold Pd.
Lux24 Apts. 18.3% 2.1x 60 mos. 57.5% 3.1x 33 mos.
Giordano’s Retail 26.2% 3.0x 60 mos. 56.1% 4.5x 41 mos.
Food 4 Less Retail 17.6% 2.0x 60 mos. 37.1% 2.6x 35 mos.
Marquis Crest Apts. 26.6% 2.2x 60 mos. 27.0% 2.2x 43 mos.
Arbor on Richmond 19.7% 1.7x 36 mos. 26.7% 2.2x 58 mos.

If you’d like to learn more about our open investment opportunities, visit the “Offerings” page via our site’s top navigation.

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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.