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Case Study: The ONE @ Avondale Station
Quick Facts:
• Type: Ground-Up
• 470 units
• Investment: $11.98M
• Total project cost: $11.98M
• Years held: 1
• Sold: $32.4M
• Profit: $21M
• IRR: 1068.1%
The ONE at Avondale Station is a 470-unit multifamily property located in Avondale, Arizona. It empowers its community to design their dream
life through a variety of homes suited to every lifestyle, with a four story elevator serve, three story walk-up, and detached carriage homes. It
includes a variety of amenities, namely a resident clubhouse, pool, fitness center, dog park/wash, and Sky-Deck. Multifamily Development Process
Talos Holdings takes a different approach to entitlements, ensuring minimal friction and reducing cycle time. Instead of going to the city and
proposing the outlined idea, they asked the city what they see on that piece of land; what would benefit the residents of their community and
meet their needs. Because of this approach, Talos cut the typical 1-year entitlement process in half. They then finalized all of the plans, specs,
and required construction permits in 9 months. Maximizing Returns with No-Brainer Offers
In the last stages of the 9-month construction permit stage, Talos received a call from a developer in Oregon wanting to purchase a shovel-ready
site. The offer was within $4 million of the expected gain after taking on the risk of the 4-year development and lease-up. However, this was not
a no-brainer offer for the company. The buyer wanted another 90 days of due diligence after the completed 30 days due diligence, but Talos said
that they’d only accept the offer if they’d be willing to close within five business days. The buyer disagreed initially, but called back two hours
later and accepted the offer. This resulted in Talos achieving the no-brainer offer they’d sought after, and an exceptionally high IRR of 1068.1%. 
