Watermark JSQ I at Southlands project located in Aurora, Colorado sold on February 2, 2016. The Property Manager broke ground on the 300-unit project in September 2013 and this development was the 5th of six projects in JSQ Multifamily I.
Southlands was the largest total dollar amount invested by the Fund in any single project. Despite some early construction hurdles, it was evident early into the initial lease up that the project was tremendously received by the market. The Property Manager was able to achieve stabilization at the property ahead of schedule at rents that were nearly 11% above initial pro forma.
The project was sold at a price of $78,000,000 or $260,000 per unit. This sale price well surpasses the Fund Manager's original pro forma sale price of $193,000 per unit and the project was sold approximately 2.5 years after start of construction. Given the above metrics, the project generated magnificent returns for our investors with a net IRR in excess of 30% after all fees and expenses. These returns make our Southlands development the most profitable project to date in JSQ Multifamily I.
The sale of the Southlands project leaves the Fund with one remaining unsold project in JSQ Multifamily I (West Des Moines, Iowa) which we anticipate having sold by mid-2016.