Case Study: Bank One Plaza

• Bank One Plaza, a 236,456 square foot office building and parking garage in Lexington, Kentucky, was purchased in November 1999 for $19,400,000.
• HGI implemented a comprehensive capital improvement program, totalling over $450,000.
• The property was sold in October of 2002 for $21,650,000. Sale proceeds of $3,865,000 were distributed to investors and $1,618,710 in dividends was paid during HGI’s ownership of the property. In total, investors received a return of 151% of their equity invested for an IRR of 18.50% during the 3-year holding period.

Case Study: The Crescent

• The Crescent Minories, an office building in London, was acquired in the first quarter of 1999 for a total purchase price of £1,950,000.
• HGI capitalized on the dynamic single-tenant office market in London where the market environment can be more advantageous to landlords relative to tenants.
• HGI sold the property in the first quarter of 2000 at a time when the London office market had dramatically improved with occupancy rates approaching 95%.
• HGI distributed £40,000 during the year in which it owned The Crescent and total proceeds from the sale totaled £2,250,000. The compounded annual return for the investment period was 34%.

Case Study: First Virginia Tower

• First Virginia Tower, a 297,000 square foot office building and parking garage in Norfolk, Virginia, was purchased in September 1995 for $5,650,000.
• First Virginia Tower was 79% occupied at closing. HGI implemented an aggressive leasing strategy which resulted in 93% occupancy within two years. HGI continues to intensively asset manage the property, and has maintained an average occupancy of 98% for 5 years.
• HGI refinanced the property in the Spring of 1998 when interest rates were favorable. The property was valued at $11,000,000, and HGI was able to return 150% of each investor’s equity.
•The property has proved to be a superior investment with a current yield of approximately 15% (based on original equity investment).

Case Study: Pine Meadows Apartments

• Pine Meadow, a 204 unit apartment community located in Greensboro, North Carolina, was purchased in November of 1993 for $4,950,000.
• HGI undertook a $500,000 renovation project which included addressing deferred capital needs and value-added enhancements. HGI implemented a leasing strategy which increased occupancy by 12% and rental rates by 24% over a twelve month period.
• HGI refinanced the property in the August of 1995 and was able to return 150% of investor equity. HGI sold the property in July of 1997 under favorable market conditions and completed a 1031 tax deferred exchange into Thunder Hollow Apartments in Orlando, Florida in November of 1997.
• HGI refinanced Thunder Hollow in April of 1998 and subsequently sold the property in August of 1998 for $6,975,000. The five year internal rate of return was in excess of 53%.

Case Study: Quarterfield Crossing Apartments

• Quarterfield Crossing Apartments, a 204 unit multi-family complex in Glen Burnie, MD, was purchased in July 1999 for $5,116,000.
• HGI immediately began a comprehensive, $1.9 million renovation of the property. This program included new roofs, the installation of central heating and air conditioning, new countertops and dishwashers in all units, and an extensive electrical system upgrade in addition to exterior improvements.
• HGI refinanced Quarterfield Crossing Apartments in December 2000 and returned approximately $1.3 million of the $1.55 million original investors’ equity.
• The property was sold in August of 2003 for $11.5 million. Sale proceeds of $3,429,000 were distributed to investors and $421,814 in dividends was paid during HGI’s ownership of the property. In total, investors received a return of 333% of their equity invested for an IRR of 53% during the 4-year holding period.

CASE STUDY: Island Pointe Apartments, Jacksonville, Florida

• Island Pointe, a 288 unit apartment community located in Jacksonville, Florida, was purchased in June of 2001 for $9,000,000.
• HGI undertook an extensive $2.9 million renovation project which included addressing deferred capital needs and value-added enhancements. The scope of the one-year project covered structural, architectural, and site improvements. Specific renovations included the replacement of major foundation components, new exterior siding and paint, clubhouse renovations, and significant storm drainage modifications. The property received an impressive new look and protection from moisture that had damage the structure in the past. Occupancy remained stable, at an average of 93% throughout HGI’s term of ownership.
• HGI sold the property in February of 2003 for $15,250,000. The Internal Rate of Return on the property was in excess of 34%