Napali Capital returns substantial gains to its investors through sale of Georgia Asset
Southlake, Texas, April 16, 2019 — Napali Capital, LLC, a leading Texas-based real estate investment company, reported a 75 percent total return, including distributions and sale, and a 40 percent annualized rate of return to its investors through the sale of Residences at Mountain Lake in Stone Mountain, Georgia.
The sale of Residences at Mountain Lake supports Napali Capital’s mission to generate wealth and financial freedom for physicians through real estate investment. The company was founded by Thomas Black, M.D., a practicing physician, and his brother Tim Black, a retired COO of Great Wolf Resorts, as a way to provide an additional, consistent revenue source for physicians whose profession has seen a drastic decrease in salary as a result of ongoing changes in the healthcare industry. Since then the company has partnered with both physicians and non-physicians through real estate investment and have amassed a portfolio of $145 million under management, Residences of Mountain Lake excluded.
“With the trend of healthcare consolidation, increased demands, longer hours coupled with declining compensation, and lack of autonomy, physician burn out is at an all-time highs while satisfaction and compensation are declining,” said Thomas Black. “Our goal when forming Napali Capital was to create reliable, consistent cash flow for physicians–for all our investors–to allow for options in their professional careers.”
The rise of burnout and decline of compensation have become a growing concern among healthcare professionals in recent years. Record number of physicians are looking for supplemental income to offset the loss in salary.
“The statistics on debt to income for physicians five, ten, even fifteen years or more out of medical school are astounding,” said Tim Black. “We’ve talked with many physicians who, because of this, question their decision to practice medicine. We want to change that.”
Through Napali Capital’s strategy of real estate acquisition, operations and asset improvement, and property appreciation, physician investors receive stable, consistent cash flow and tax depreciation for the duration of ownership and profit from the added equity at the sale of the asset. The goal of this platform is to provide physicians financial and therefore professional freedom.
Mountain Lake is a perfect example of how our business plan should work,” said Thomas Black. “We saw the opportunity to improve not only the product but also the operations, and with the help of our excellent on-site management team, we executed the plan and hit our targets even sooner than we had planned.”
Napali Capital purchased Residences at Mountain Lake apartment complex in June of 2017. The company injected $1 million in capital for repairs, unit upgrades, and property improvements and engaged Strategic Management Partners to assume and improve day-to-day operations. The property met or exceeded its five-year targets within 18 months. The sale pcreated 75 percent total return, including distributions and sale, and 40 percent annualized rate of return to its investors.
Napali Capital’s portfolio currently consists of multifamily and industrial assets. The company recently formed Napali Hospitality Group to further diversify its portfolio through limited and select service hotels.