The GSH Group Announces Sale of Foote Hills Property, Achieving Impressive IRR of 18%

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Apr 09, 2024, 08:43 ET

CLAWSON, Mich., April 9, 2024 /PRNewswire/ -- The GSH Group, one of the nation's fastest-growing multifamily real estate investment companies, is thrilled to announce the successful sale of its Foote Hills property in Grand Rapids, Michigan. The sale resulted in an impressive ~18% IRR, while Investors enjoyed a ~10% cash-on-cash yield throughout the holding period of the property.

GSH acquired the Foote Hills property in March 2020, recognizing the immense potential in the thriving Grand Rapids submarket. At the time of acquisition, rental rates in the community were significantly below market rents. Leveraging their expertise, GSH implemented an intentional value-add program, making significant capital investments to upgrade the interior units and enhance the property's exterior components through carefully planned renovations.

These strategic improvements allowed the property to attract a higher-quality demographic of renters and subsequently raise the rental rates, thereby significantly boosting the asset's status in the market. The Foote Hills property was recently sold for a final sale price of $32,000,000.

Gideon Pfeffer, CEO & Managing Partner of The GSH Group, expressed his satisfaction with the successful sale, stating, "The sale of Foote Hills marks a significant milestone for The GSH Group and demonstrates our ability to identify and capitalize on investment opportunities in strong markets. Our strategic value-added approach provided exceptional returns for our investors and positively impacted the communities in which we operate."

With decades of experience, the GSH partners and executive team have built a highly effective platform to buy, enhance, and operate real estate, which has benefited their investors and positioned the firm to capitalize on unique opportunities in the multifamily space. While today's volatile interest rate environment has led to significant real estate distress, GSH sees a window of immense potential on the horizon for new buying opportunities. GSH's infrastructure and network are in place to capitalize on these unprecedented times, and they look forward to announcing soon how investors can get involved.

About GSH:

Founded in 2017, The GSH Group specializes in owning, managing, and improving multifamily communities in desirable locations with strong potential. The GSH partners have purchased approximately 9,472 apartment units in the country's top housing markets. Its current portfolio consists of around 6,387 units across 6 states, including 10 multifamily communities acquired in 2021. The firm currently holds approximately $1 billion in assets under ownership.
The GSH Group has recently been recognized for other outstanding accomplishments in the industry, including the prestigious M&A Award 2024 for its creative financing deployed to close the region's top multifamily deal of 2023. The GSH Group is also an Inc. 5000 company. To learn more, visit gshrealestate.com.

MEDIA CONTACT:

Mataan Lis
Director of Investor Relations
248.787.4745

SOURCE The GSH Group