One of the common questions David Meilan, Director of Investor Relations, gets in his daily investor intake calls is about Nighthawk's track record.
As a potential investor, you always want to conduct thorough research on the operator that you're considering, just to see if they're a good fit for you. You want to see how they perform historically, and you want to be able to ask the right questions regarding that.
One standout property that comes to mind in terms of Nighthawk's portfolio is Sierra Place, an apartment community located in Atlanta, Georgia, that we closed on in late 2020. Drew Kniffin, President of Nighthawk says that property is performing really well. It was our first deal out of the initial onslaught of COVID so there was a lot of nervousness in the market. But we also saw a lot of opportunity there.
This was our first purchase in northern Atlanta. The exterior renovations were completed in the first eight months of the deal. That was a huge facelift, new roofing, new siding, new color scheme, new landscaping – and it just looked completely different. Occupancy remained really high during that whole time, and as we've been renovating units, what we've been seeing is the existing tenants want those new units. So they simply move from an old unit to a brand new unit and occupancy is basically untouched. There's a tremendous desire by that tenant base to stay in that property.
We are on track with our distributions, meeting them to the nickel, even throughout the entire COVID process. We've exceeded by far where we thought we'd be in year one with that property, so it's been great for us.
Our goal for all our properties is to get to quarterly distributions. That usually begins six to nine months after acquisition, and it does build up the first year or two as we raise rents and pour cash back into the asset to improve the value. One example of a mature property of ours is Beverly Springs.
We bought this at about four years ago and right now we're doing monthly distributions on the asset at a 14% cash on cash return to our investors. So that one's going really well. It's consistent and it's delivering that cash flow every month to those investors.
So, Sierra Place is a large value-add property. Beverly Springs is a great cash flowing property. What about properties in our portfolio that have had great results in terms of a refinance? Country View meets that criteria. When he bought this deal, it was 30-32% vacant. We quickly filled it up to 95% in 15 months. We refinanced that property because of the value add that we had done that gave investors 84% of their initial money back.
They got their money back and the asset increased in value significantly. The investors can take that money and do another Nighthawk deal, or pay for college, or vacation, and they're still getting ongoing value creation of that asset.
We have a collection of great performing properties in our portfolio.
For everyone who's tuning in, if you have interest in our passive investments, join our investor club by clicking here: https://nighthawkequity.com/join
