Despite the weak local economic conditions and the scarcity of capital  this created, our capital markets expertise enabled us to place our 10-year, fixed-rate acquisition debt directly with a CMBS conduit at full leverage with no recourse without an intermediary. This increased our return on equity and lowered our risk related to recourse and personal guarantees.

After closing, we increased occupancy from 85% to 95% almost immediately with more intensive management. We then began selective interior upgrades to improve rents, and we reduced operating expenses through technology enhancements. Ulitimately, these changes drove NOI growth to such an extent that we were able to refinance our acquisition debt with new non-recourse FNMA agency debt. This capital event was sufficient to return 100% of initial equity capital plus a significant multiple.

In 2023, we refinanced again, and this refinancing returned yet another significant multiple of capital. In addition, the local market recovery strengthened, led by a  $200 million ground up development that will include a 3,000 seat event center, premium hotels, shopping, dining, and housing.

In 2025, we completed an exciting $1 million exterior and interior renovation of Chimney Hill, including full replacement of all exterior siding in a bold new design.  We also added new smart home features, including ButterflyMX video intercom security systems, smart locks and dedicated property-wide 100% fiber optic managed wifi. These technology investments will allow us to enhance the resident experience and further optimize operational efficiencies for the next phase of NOI growth.

We still see new opportunities to generate NOI growth from additional interior unit upgrades, and the introduction of new operational efficiencies through technology. To date, Chimney Hill has generated a 23.85% simple per annum return vs. the NCREIF benchmark return of 7.8%*.