Despite the scarcity of lenders, 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. 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. 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 addition, the local market strengthened, and clear indications of recovery emerged, including a ground up $200 million development that will include a 3,000 seat event center, premium hotels, shopping, dining, and housing.

In 2023, we refinanced yet again, and this refinancing returned yet another significant multiple of capital. We continue to own this asset today, and we see new opportunities to generate NOI growth from additional interior and exterior upgrades, general market growth, 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%*.

We are now completing an exciting exterior renovation of Chimney Hill, including full siding replacement in a bold new design that matches the market recovery. We are also adding new smart home features, including 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.