Hamilton Point Banks $6.25 Million Profit on Full-Cycle Sale of Missouri Student Housing Property
Hamilton Point Investments LLC announced the recent full-cycle sale of The Den, a 158-unit student housing apartment property located in Columbia, Mo. Its October 2024 $27.5 million sale followed a 3.5-year hold period.
The real estate private equity firm – which increased focus on distressed multifamily properties within university markets during the pandemic – purchased The Den in May 2021 through HPI Real Estate Fund VIII for $21.25 million. Fannie Mae had recently foreclosed on the property’s defaulted mortgage, making the acquisition possible.
HPI Real Estate Fund VIII raised approximately $115 million and acquired 12 multifamily assets, several of which were also distressed student housing properties. According to Hamilton Point, the sale of The Den represents the fourth highly profitable full-cycle sale from Fund VIII.
“[Hamilton Point] has taken seven funds and seven DSTs full cycle since inception, all within a roughly 4.5-year hold period with a weighted average [internal rate of return] of 18% annualized, net to investors” said Josh Grenier, president of Hamilton Point. “We feel similarly confident on our extant funds.”
Over the summer, Hamilton Point announced the close of HPI Real Estate Fund XII LLC. Launched in March 2023 seeking to raise up to $150 million from accredited investors, the fund ultimately raised $196 million through 32 independent broker-dealers and 18 registered investment advisers. The equity was invested in eight multifamily properties totaling 2,118 apartment units.
Connecticut-based Hamilton Point Investments owns and manages multifamily properties, hotels, student housing, and manufactured housing communities. It raises equity from accredited individual investors in a series of closed-end real estate private equity fund. Since inception in 2009, it has acquired nearly 35,000 apartment units for some $3.5 billion. The firm has over 350 employees nationwide.
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