MFI Westgrove
Raleigh, North Carolina
Total
Units
Total Units
97
Hold
Period
Hold Period
Years
Purchase
Price
Purchase Price
$18.7M
Invest Equity
Raised
Total Equity Raised (Sponsor)
$9.76M
Target Annual Rate of Return
20.40%
Target Equity Multiple
2.02x
Target Average Cash on Cash
5.00%
Property Photos
Investment Overview: MFI Westgrove
Raleigh, North Carolina
Acquisition & Strategy
MFI Westgrove is a multifamily investment in Raleigh, North Carolina. Investors participated through a fund structure that provided indirect ownership in the underlying asset (currently operating as Apartments of Westgrove). The property is a 97-unit community in a B+ submarket of Raleigh, built in 1987 and comprised of 11 buildings.
The acquisition was sourced from a JV partnership dispute where an equity partner was forcing the sale, creating the opportunity to acquire at a 30%+ discount relative to where it likely would have traded approximately 36 months ago.
Our value-add strategy is to reposition the property by executing renovations across 100% of the units, including adding in-unit washer/dryers, supported by a defined interior scope such as vinyl plank flooring, two-tone paint, and resurfaced countertops. This plan is supported by the asset’s fundamentals and its location in a B+ Raleigh submarket with proximity to major institutional and employment anchors including North Carolina State University, the Wake County Public School System, and Duke University.
Value Creation & Market Dynamics
The repositioning strategy includes the opportunity to upgrade all units with a consistent premium interior finish package and adding in-unit washer/dryers. The in-place average rent of $1,654 is underwritten to increase to approximately $1,724 following renovations, representing a $70 per-unit lift across the community.
Raleigh’s strong job and population growth continues to support apartment demand. The asset was acquired at an entry basis of approximately $192,000 per unit—reflecting a 30%+ discount relative to where it likely would have traded roughly 36 months ago—paired with moderate leverage of approximately 63% LTV. The business plan is further supported by an expense-reduction initiative through a property tax abatement strategy
Market Analysis
Raleigh is one of the most durable apartment markets in the Southeast, supported by strong population inflows, a highly educated workforce, and a diversified employment base anchored by the Research Triangle. Over the past year, the Raleigh region has continued to expand, posting approximately 2.6% population growth, with long-term forecasts calling for roughly 146,000 new jobs by 2032—tailwinds that support sustained housing demand.
The Westgrove submarket benefits from proximity to major institutional and employment centers, including North Carolina State University, the Wake County Public School System, and Duke University, which helps stabilize renter demand across economic cycles. Combined with Raleigh’s ongoing growth and limited affordability for homeownership in many pockets of the metro, well-located workforce housing is positioned to remain a critical part of the region’s housing supply.
Financial Performance & Forecast
The investment targets a 2.02x equity multiple over a 2-5-year hold with projected average annual returns of 20.4%. Initial year cash flow is estimated at 3.7%, growing to 6.8% by Year 5. A conservative underwriting approach was used, including an interest rate cap at 4.75% and $1.7M in cash reserves for downside protection.
Key Investment Metrics
- Purchase Price: $18,700,000
- Equity Raise: $9,756,820
- Number of Units: 97
- Vintage: 1987
- Current Occupancy (as of 08/18/25): 94%
- Leverage: ~63% LTV
- Minimum Investment: $100,000
Conclusion
MFI Westgrove is a Raleigh multifamily investment featuring a full-unit modernization plan (including washer/dryer installations), targeted exterior and amenity upgrades, and an expense-reduction initiative through a tax abatement strategy—supported by strong regional growth drivers and proximity to major employment centers.
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