- Published on Monday, 15 October 2018 10:10
Westplan Residential Development Fund (WRDF) was formed in 2008 and provided equity for development and purchase of 10 multifamily properties located throughout the southeast.
In 2011-2012 eight of the construction loans matured and Westplan was able to manage the refinancing of these assets and provide a significant level of additional funding required to close six permanent loans. On five of these assets Westplan assumed the general partner position in order to control the day-to-day operations. Strategic disposition of 5 of the assets occurred between 2011 and 2016. The remaining five assets were sold in Q4 2017 and in 2018 resulting in a 1.77 cash multiple return to the fund.
The success of this fund, especially considering the timing of the investment prior to the recession, speaks to the strength of the multifamily asset class and its ability to withstand downturns. Due to the relatively short lease cycle of 12 months, Westplan was quickly able to take advantage of increasing rental rates as the market recovered. Westplan’s ability to raise funds to refinance these assets and others at the height of the recession is a testament to the trust and respect our investors have in Westplan.
Westplan plans to continue to take advantage of market conditions to make investments and recommendations to our investors, with their interests first and foremost in our strategy decisions.