Case Studies

Rustic Creek Apartments

Austin, Texas

Praxis Capital acquired the former Walnut Grove Apartments in Austin, TX and completed a major rehabilitation of the interior and exterior of the buildings and landscaping. This complex consists of five buildings, all of which are two-story garden-style walk-ups. Within 12 months of acquisition, the entire property had been reconstructed and stabilized, with occupancy rising from 66% to 97%.  We increased gross income 86% in the first two years, and brought Net Operating Income from negative to $160K in the first year.

Having exceeded all acquisition projections, Praxis liquidated the property less than two years after acquiring it, achieving a 42.5% net IRR to our investors.

Year Built : 1972
Units : 54
Rents at Acquisition : $560
Rents at Sale : $700
Occupancy at Acquisition : 66%
Occupancy at Sale : 97%
Renovation Cost : $12,963 Per Unit
Net IRR (Projected) : 23.5%
Gross IRR (Actual) : 63.3%
Net IRR (Actual) : 42.5%
Net Equity Multiple (Actual) : 2.29x
Hold Time : 21 Months

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