Ranch at Pinnacle Point
In 2015, Advalurem completed the acquisition of Ranch at Pinnacle Point, a 396-unit garden-style apartment community located in Rogers, AR. The Property features Hill Country architecture and luxury amenity package.
The property is located in Northwest Arkansas, one of the fastest growing economies in the nation. The metropolitan area is driven, in large part, by the major Fortune 500 companies headquartered there, including Walmart, J.B. Hunt and Tyson Foods. The economy is also rooted in education and healthcare with the University of Arkansas and several prominent health care systems providing a foundation for growth.
The business plan calls for increasing cash flow over the holding period by introducing a significant common area and unit upgrade program, streamlining operations, as well as drafting off strong demand fundamentals. Advalurem structured its investment as sponsor equity and received key partnership rights for early liquidation and enhanced profit sharing. Advalurem expects to hold the investment for seven years with an overall return in the mid-teens.