Updated: May 4
We are very excited to announce that GAIN Opportunity Fund I has closed on its first acquisition! On Friday December 11, 2020, GAIN successfully closed on a 29-unit, value-add apartment complex located in Highland, Indiana, just ten minutes east of the Illinois border. This deal was sourced by GAIN Principal, Tad Lagestee, in an off-market transaction.
The building was a long-term investment held by a local family. The property will benefit from professional investment ownership as well as significant capital improvements. GAIN intends to invest in simple but meaningful projects including landscaping, unit and common area renovations and long overdue deferred maintenance projects including a new roof and parking lot. We believe that current and prospective tenants will find new value in their community which result in increased demand and subsequently a rent premium. GAIN was able to lock in a historically low interest rate with Freddie Mac which will provide a great hedge against any future inflation.
There is deep value in the Northwest Indiana corridor and a long runway for tremendous growth. The market is largely driven by the Illinois and Chicago economies. Located 30 miles south of The Chicago Loop, it is easily accessible by car or the South Shore Train.
This is the first of several acquisitions for GAIN Opportunity Fund I. The fund will target mid-teen Internal Rates of Return (IRR), hold properties for 5-10 years and will acquire multifamily, office and flex buildings. We will implement a value-add and core plus acquisition strategy as it best marries our real estate experience and fund target returns.
We look forward to sharing our continued growth and successes. If you are looking to sell property or are looking to invest capital in similar deals, please contact us!
Investments are only available to “accredited investors” as defined by the Securities and Exchange Commission. Past Performance is not a guarantee for future results.