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Royalton Real Estate Capital is proud of its track record. Over the past ten years, the group’s partners have completed 75 real estate private equity transactions, investing more than $300 million in equity. The group has deployed approximately $130 million since August of 2005. About half of these transactions (33) have fully monetized as of January 2007. These have yielded a weighted average IRR of 18%, with a multiple of 1.59 on an average hold of 40 months. The remaining 42 unrealized transactions have a weighted average pro forma IRR of 28%, with a multiple of 2.24 on an average hold of 40 months. * These transactions were closed by Royalton team members prior to the formation of the firm
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Royalton Real Estate Capital targets equity investments that range from $1 million to $15 million per transaction. For new developments and value-added acquisitions, the firm targets the following returns: • 18 to 20% IRR For core and core-plus acquisitions, the firm’s return targets are naturally less aggressive: • 8% annual cash-on-cash yield These return targets are net of all Royalton fees and profits participation. Each individual transaction’s targeted returns are based on underwriting assumptions that Royalton believes are conservative and realistic. |
