Successful Exit in Chicago Generates 17% IRR

Breneman Capital is pleased to announce the successful disposition of 1414 N Noble St in Chicago on 8/31/2023.

1414 N Noble generated deal-level returns over the 5.9-year hold of:

• 17% IRR

• 1.6x equity multiple

Breneman Capital acquired 1414 N Noble directly from the owner with no competing offers in 2017. We then set out with a light renovation program correcting building violations on the porch, replacing furnaces and air conditioners that were not replaced in the prior owner's renovation, installing nest thermostats, renovating common areas, and improving the landscaping and curb appeal significantly with new concrete and landscaping.

The acquisition financing experience was a memorable one since we applied for six Freddie SBL loans at the same time (5 full-cash-out refinances + Noble's acquisition loan), which is still a record for paperwork in our office.

From 2017 to 2020, the property's revenue increased drastically, and a cash-out refinance was completed in 2019 (with the property appraising at 21% above our basis in the property). But in 2020, Noble was impacted by the drop in leasing demand from the COVID-19 pandemic more than any other building we owned. It took us several years to bounce back. Still, ultimately, we were able to get back to the prior rental rates and then benefited significantly from Chicago's most recent two years of historic rent growth. From 2021-2023, the income at Noble grew from $21,045/mo (Jan 2021) to $26,6345/mo (Aug 2023), a 25.18% increase.

Thank you to everyone involved.