Key Achievement: Turned $1.7M investor capital into $6M+ property value, creating over $2M in equity while delivering consistent 15% returns to partners since July 2024.
In the world of multifamily real estate investing, success stories often sound too good to be true. However, with the right strategy, team, and execution, extraordinary results can become a reality. The Lilac Way project in Evanston exemplifies how strategic value-add investing can transform not only properties but entire communities, while delivering exceptional returns to investors.
The 45-unit Lilac Way property had a reputation nobody wanted. Known for neglect, crime, and being an eyesore in Evanston, this property represented everything wrong with poorly managed multifamily housing. When I first started my due diligence, every local contact warned me about this property’s troubled history. But where others saw problems, I saw opportunity.
The acquisition structure was creative from the start. With a purchase price of $2.375 million, we utilized seller financing to minimize upfront capital requirements. The seller carried $2.125 million of the purchase price, allowing us to raise $1.7 million from limited partners through Big Horn Capital Fund. This strategic financing approach meant our investors’ capital went directly toward renovations and repositioning rather than being tied up in the acquisition.
Our transformation strategy went beyond simple cosmetic upgrades. We recruited a specialized construction crew from Houston, who relocated to the property and lived on-site for nine months. Working six days a week, this dedicated team systematically renovated each unit, bringing them from substandard conditions to market-leading quality.
The real game-changer came with our short-term rental strategy. We converted nine units into beautifully furnished short-term rentals, targeting traveling nurses, construction workers from the nearby nuclear plant project, and professionals seeking quality temporary housing. While I initially projected that these units would generate $1,800 per month, actual performance exceeded expectations, bringing in between $1,600 and $2,400 per month per unit, even during traditionally slower months like October.
In real estate syndication, credibility comes from delivering on projections. When raising capital, I presented investors with three scenarios: a conservative base case projecting $50,000 in monthly revenue, a target case, and an aggressive STR-focused projection reaching $64,000 in monthly revenue. Today, the property generates nearly $60,000 in monthly revenue, validating our underwriting while maintaining room for continued growth.
The financial performance speaks volumes. With current monthly revenue of $50,000 and optimized operating expenses, the property generates a monthly cash flow of $23,000. Our investors have received their promised 15% returns every month since July 2024, demonstrating the stability and reliability of our business model. The upcoming refinance at $3.825 million will repay all investors and the seller, while still maintaining a monthly cash flow of $16,000, creating long-term wealth for our company.
This transformation extends far beyond financial metrics. What was once a blight on the community has become one of the nicest places to stay in Evanston. We’ve created jobs for construction crews, property managers, and maintenance staff. The property now attracts high-quality tenants, including nurses, professionals, and responsible families, which contributes to neighborhood stability and growth.
The ripple effects of this transformation demonstrate what I call “investing with purpose.” By taking on challenging properties that others avoid, we’re not just building wealth; we’re revitalizing communities, creating safe housing, and proving that responsible investment can drive positive social change.
We structured the deal with sufficient working capital and implemented a phased renovation approach. As we completed units, they were immediately made available online, generating revenue. The combination of traditional rentals and higher-yielding short-term rentals created cash flow that supported investor payments even during the renovation period.
Location and timing were crucial. Evanston is situated between Park City and Salt Lake City, and the nearby nuclear plant construction project has generated significant temporary housing demand. We targeted our furnished units toward traveling nurses, construction professionals, and business travelers who needed quality accommodations but didn’t want long-term leases.
I always present both scenarios to investors. The conservative case illustrates what can be achieved with minimal risk, while the target and aggressive cases demonstrate the upside potential. This transparency helps investors understand both the floor and ceiling of returns, allowing them to make informed decisions based on their risk tolerance.
The property’s reputation was our biggest hurdle. Locals knew it as a troubled asset with crime and neglect issues. We overcame this by bringing in an out-of-state construction crew who lived on-site, providing constant oversight and security. Their presence, combined with rapid, visible improvements, quickly changed the narrative around the property.
The refinance at $3.825 million allows us to return all investor capital plus their accumulated returns, giving them a complete exit with profits. Meanwhile, we retain ownership of a cash-flowing asset worth over $6 million with more than $2 million in created equity. It’s a true win-win that demonstrates the power of value-add multifamily investing.
The Lilac Way project demonstrates that, with the right strategy, team, and execution, transformative real estate investments can deliver exceptional returns while creating a positive community impact. We’re now applying these same principles to a similar project in Billings, Montana, where we’re tackling another distressed property with tremendous potential.
Ready to Partner on Transformative Real Estate Deals?
If you’re interested in investing in multifamily projects that combine strong returns with meaningful community impact, let’s connect. Visit bighorncapitalfund.com to learn more about current opportunities.
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