Case Study

Opportunistic Multifamily Development

Cotton Mill Commons
Simpsonville, South Carolina

Year Acquired
2017
Year Sold
2020
Number of Units
144
Hold Period
3 Years

Opportunity

Buligo Capital Partners developed a Class-A 144-unit multi-family community in Simpsonville, South Carolina, on the site of a former textile factory. In exchange for committing to partial restoration of the historic mill, the property qualified for tax credits accounting for almost 10% of the initial funding. Due to lack of available land suitable for multifamily development, the market has high barriers to entry.

Location

The property is walkable to Simpsonville’s historic downtown district, featuring a variety of retail options. The area’s recent economic and demographic expansion made it well suited for new development. The location features easy access to the broader region due to its proximity to major throughways and favorable employment opportunities thanks to the presence of several large employers.

Result

The project opened in May 2019 and reach 97% occupancy within six months. Upon stabilization, the property was refinanced with long term debt and investors received a full return of capital. A short five months later the property was sold. Due to the successful development and management of the project, in just under three years the property realized returns substantially higher than originally forecasted.