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.
