Hamilton Point Investments Closes Seventh Multifamily DST
Hamilton Point Investments LLC, a sponsor of real estate private equity investment funds, completed its seventh multifamily Delaware statutory trust exchange, HPI Plantation DST. The newly formed DST acquired Plantation Apartments, a 240-unit multifamily apartment community, located in Gulfport, Mississippi.
The DST paid $21.1 million ($87,917 per unit) for the property, with $8.7 million of investor equity which was raised in approximately 30 days. The property was financed with a 10-year Fannie Mae mortgage loan with a fixed interest rate of 3.82 percent.
“We are really focused on pricing relative to replacement cost,” said Matthew Sharp, cofounder and managing principal of Hamilton Point Investments. “This asset would easily cost $135,000 per unit to build today, so that discount to replacement cost provides confidence that a profitable exit down the line is likely.”
Plantation Apartments features interiors with nine-foot ceilings, large unit sizes averaging 1,068 square feet, walk-in closets, washer/dryer hookups in each unit, private patios or porches, and vaulted ceilings in select units. Amenities include a swimming pool with spa, clubhouse with grilling center, fitness center, pet walk area, children’s playground area, volleyball court, and business center.
Affiliates of Hamilton Point Investments LLC have acquired more than 7,000 apartment units since 2009. The company owns and manages multifamily properties and invests through a series of private equity investment funds and 1031 DST programs that focus on purchasing apartment communities in growing markets at below replacement cost.
