Case Studies
Cornerstone’s principals have collective real estate investment experience totaling more than 75 years, with a particular emphasis on multifamily real estate.
At Cornerstone, we’re focused on creating value for our stakeholders. We empower our employees and leverage our industry relationships to create a better customer experience for our residents and returns for our investors.
Non-traded REITs
Landmark Apartment Trust
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Landmark Apartment Trust
- Formed in 2005 by Jay Olander & Gus Remppies
- Raised $200 million through a best efforts offering between 2006 and 2010, proceeds were invested into Class A multifamily apartment properties throughout the sunbelt
- Acquired 60 Class B properties between 2012 and 2014 using proceeds from private placements and the issuance of OP Units to amass a portfolio in excess of 24,000 units
- Invested $25 million to renovate and reposition 20 properties generating a 17% IRR
- Acquired by Starwood Capital & Milestone Apartment REIT in 2016 for $1.9 billion
Cornerstone Realty Income Trust
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Cornerstone Realty Income Trust
- Multifamily REIT co-founded by Jay Olander in 1993
- Raised $300 million through a best efforts offering and used proceeds to purchase garden style apartments
- Listed on the NYSE in 1997 for $10.50/share
- Owned 87 properties across the southeastern United States totaling 23,000 units
- Acquired by Colonial Properties Trust in 2005 for $1.5 billion
Institutional Real Estate
Bay Breeze | Ft. Myers, FL
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Bay Breeze | Ft. Myers, FL
- Purchased Bay Breeze, a 180 unit garden-style apartment community located in Ft. Myers, Florida, in August 2012 for $18 million ($98,333 / unit)
- At the time of the acquisition, average monthly rent was $912 / unit
- Over a 23-month period following the acquisition, management focused on increasing average rents, ancillary income and occupancy
- Focused on reducing operating expenses by utilizing bulk purchasing power with national vendors and obtaining reimbursements of utility costs from residents
- Sold for $24 million in June 2014 ($134,166 / unit)
- At the time of sale, average monthly rent had increased to $1,049 (15% higher than at acquisition)
- Delivered a realized IRR of 30%
Collin Creek | Dallas, TX
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Collin Creek | Dallas, TX
- Acquired asset in 2013 for $21.5 million
- Invested $1.7 million capital expenditure to renovate and reposition the asset ($5,643 / unit
- Average revenue per occupied unit increased from $846 pre-rehab to $1,044 post-rehab (24% increase vs 4% 2014 market rent growth)
- Property was recently appraised for $29.5 million
- 86% return on investment based on appraised value
Spring Creek | Dallas, TX
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Spring Creek | Dallas, TX
- Management was the property manager for the prior owner
- Presented opportunity to acquire asset in a non-marketed transaction
- Acquired asset in November 2014 for $10.7 million, which represented a significant discount to comparable market sales
- Invested $1.8 million to renovate the clubhouse, change the landscape and upgrade unit interiors ($7,615 / unit)
- Average revenue per occupied unit increased from $793 pre-rehab to $954-post-rehab (20% increase vs 4% 2014 market rent growth)
- Property was recently appraised for $17.7 million
- 131% return on investment based on appraised value
