- Mt. Auburn
13th Floor Investments invested $50MM in Mount Auburn Multifamily, a private real estate company with 1.4 billion of assets under management. Mt. Auburn’s portfolio consists of stabilized, high-quality multifamily assets in high-growth US secondary markets with STEM-based economies, and with current occupancy of 95%. Mt. Auburn owns and manages through its integrated property management arm, Bluestone Property Management, over 8,300 units across 31 assets with an average vintage of 2008. While 46.2% of the US population is “Rent Burdened”, the Company’s portfolio has a sustainable average rent/income ratio of 16%.
This opportunity allows 13th Floor to acquire a 20.4% interest in Mt. Auburn at a 10% discount on the real estate and 36% on MTA’s share price relative to fair market value. 13th Floor’s negotiated discount translates into an acquisition at an implied blended 5.5% cap rate on an FWD NOI basis for assets currently valued at a 4.95% cap rate. Over a targeted five-year investment period, 13th Floor expects a strong risk-adjusted return on investment of 20% IRR and 2.4x MOIC. Projected returns are similarly strong over a ten-year horizon.