Gulf Investment House (GIH), a Kuwait-based investment company, has reported the sale of Truman Park, located in the Washington DC district, United States, at a 90 percent gain.
This makes Truman Park the first property sold out of the four Class-A multi-family development projects undertaken by the Bunyan Fund, launched by GIH in 2001. At initiation, the Bunyan Fund was the first ever highly leveraged Shari'a-compliant real estate construction program in the US.
The Bunyan Fund is a closed-ended fund comprised of four construction projects of class 'A' multi-family apartment located in key Metropolitan Statistical Areas. The Bunyan Fund's portfolio of construction projects contains real estate assets valued at approximately $123 million covering 63 acres, comprising of 60 buildings, and representing 963 units.
Truman Park was officially sold for $42.8 million on October 31, 2003. The Bunyan Fund invested in the Truman Park development project in August 2001 along with KeyBank, the 10th largest bank in the US.
KeyBank's $26.9 million Shari'a compliant construction financing arrangement accounted for 80 percent of the transaction, and served as part of Key's partnership in the Bunyan Fund. At acquisition, Truman Park had a projected Fund-level, pre-tax Internal Rate of Return (IRR) of 18.45 percent. After a holding period of a little over two years, a completed and nearly stabilized Truman Park was sold at a Fund-level, pre-tax IRR of 33 percent.
Truman Park is a 284 unit, Class A garden style apartment community located on Harry S Truman Drive in the Largo area of Prince George's County, Maryland. The apartments are situated on a 421,413 square foot site. The community features a total of 284 one and two bedroom apartments in six four-story buildings with supporting surface and structured parking. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
