OpenPath Investments Update January 2017

As the New Year is now under way I wanted to share a quick update on OpenPath (aka My Next Google) and what’s ahead in 2017. Let’s start with a few numbers from 2016.

2016 OpenPath Stats:

  • Total Costs of Properties Acquired: $109,221,900
  • Equity Raised (all from individual investors): $37.9 Million
  • Properties Acquired: 6
  • Units Acquired: 977
  • Exits: 2

Total OpenPath Stats:

Updated Performance Track Record

The 2016 transactions bring our total number of acquisitions to date to 25 with 8 sales. Across these 8 exits OpenPath investors have seen a 2.05X multiple on equity and a 33% IRR with an average hold period of 2.7 years. These numbers are significantly above our targeted 15% IRR. You can see an updated list of all of our properties and 10-year performance on this PDF.

What’s Ahead for 2017?

Macro trends in real estate continue to create opportunities for investors in apartments. Nationally, household formation continues to outpace housing construction. Shifts away from home ownership driven by a number of factors mean apartments nationally are in short supply, which in turn means growth in rents should continue to be strong. We don’t anticipate that the change in political administration will do anything to alter these base fundamentals. The potential of rising interest rates in 2017 will require that OpenPath continues to be highly disciplined in our acquiring decisions and conservative in how we model our projections but we still see considerable opportunity ahead. I expanded on this in an earlier post.

Lastly, on a personal note, I am:

  • trying to get my head around what’s happening in Washington, DC
  • reading Chaos Monkeys, a tech insider’s raw view of Silicon Valley
  • starting to plan a summer trip with extended family to Korea+Japan (if you’ve been to either, I’d love to hear your insights)
  • still feeling the inspiration of the new year to pursue my resolutions and do some good:)

Investor, Partner, Advisor. First Google Advertising Exec (2000–07), ex-Chicagoan. Now at OpenPath Investments & FullCycle Climate Partners

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