ATLANTA—Cortland Partners cashed out of two multifamily communities in Atlanta: the Woodridge and Clifton Ridge Townhomes. The transactions mark an end to its value creation cycle on two of the 29 properties it acquired in the past 27 months.

Cortland purchased the two multifamily communities for $3.3 million. The combined sales equaled $11.9 million, producing an average 2.5 multiple on the equity invested in the transactions in less than two years. Cortland invested in significant renovation on both properties to address physical plant issues manifesting in operational distress.

“We were able to achieve our original five-year projected sale prices now, less than two years into the investments,” Marvin Banks, CFO at Cortland, tells GlobeSt.com. “Realizing this value creation allows us to redeploy funds into another outsized risk-adjusted return valuation play.”

Here’s the backstory: As the multifamily real estate market began to recover, Cortland purchased Highland Club, a 212-home apartment community near Candler Road and Interstate 20 in Atlanta, Ga. Rebranding the property The Woodridge, Cortland rehabilitated the distressed asset and sold it in September. The firm purchased Highland Court in 2010. Following renovations and increased leasing activity, the investment was rebranded Clifton Ridge Townhomes. Cortland sold Clifton Ridge Townhomes 19 months after acquisition.

“We were able to exceed our projected rent levels although the lease-up stabilization period took longer than expected,” Banks says. “Confidence in our research, the execution of the physical plant improvements and achievement of projected rent levels allowed us to manage through the slower lease-up and maintain our leasing credit standards which allowed the realization of outsized returns for our investors.”