Spring Creek Acquired!

PEM is pleased to announce its closing on the acquisition of Spring Creek Apartments, a 254-unit class A apartment community in Crestview, Florida. PEM closed this transaction on September 19th, 2016. PEM looks forward to Spring Creek’s inclusion into its Southeast, United States portfolio, which has generated stellar operating performance buttressed by strong manufacturing employment growth and favorable market dynamics. PEM Residential will manage the property.

PEM capitalized the transaction with a long-term fixed rate assumable HUD loan and $6,650,000 of equity. Significant demand for this equity offering was driven by the following investment characteristics:

  • 18% forecasted investment return
  • 11.4% cash-on-cash return
  • Ability to acquire a Class-A, institutional quality asset off market and at below replacement cost
  • Substantial upside in rental rates