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.
|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.