Just Closed on 132-Unit Property!

23 Replies

Dear Bigger Pockets Friends and Colleagues:

I'm thrilled to announce that my company, Two Bridges Asset Management LLC, of Brooklyn, New York, just completed its second transaction of the year, a 132-unit residential rental property in Simpsonville, South Carolina, known as the Village Park Apartments. This follows our acquisition in February of a 102-unit property in Spartanburg, South Carolina, known as the Valley Creek Apartments.

Six months ago, we had zero units in our portfolio.  Now we have 234!  And we're looking for more!

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Thanks, Nick.  Love your tagline quote, by the way.  It's absolutely true.

@Jonathan Twombly  

That's incredible!  It sounds like massive action producing massive results.  I hope to do deals like that some day, can't wait to here more!

@Jonathan Twombly Congrats!

I am in South Carolina in Clemson. What made you choose South Carolina for your purchases? Just curious for a market point of view from someone outside the state.

Also, tell me what you are looking for in case I come across something.

Any chance you can share some numbers? I understand if you would rather keep that private, however.

@Jonathan Twombly  That's phenomenal!  Congrats!

Do your investors hold shares in TBAM LLC or are they lending to it? What type of returns are they looking for?

@Larry T. Larry, the LLC members actually invest in a separate LLC that actually owns the property. It's a long-term hold strategy, and the investors are looking for IRRs in the high teens over ten years. It's equity, not debt.

@Austin Lee  Austin, real estate transactions are public, so I don't mind sharing.  The deal size was about $4.85 million in total.

@Chad Carson Chad, why do I love SC real estate? What's not to love? You have a growing population, especially in the Upstate, a lot of jobs moving into the area, and the state is pro-business and pro-landlord. As for what we look for, it's stabilized properties of 100 units or more, preferably with some ability to increase NOI by raising rents or cutting expenses.

Now the hard part. 234 tenants....yikes

Congratulations! Hope I can reach those numbers someday. Best of luck

Wow!!! from 0 to 234 units, that's pretty awesome. I hope to be doing deals of this magnitude in the future.

Congratulations on such great progress. And good to hear SC getting love as well!

Congrats! I live in NYC and own a few rentals near your recent purchase in SC. Would love to meet up and share stories in the city or your borough. Congrats again!

Originally posted by @Seth Sherman:

Now the hard part. 234 tenants....yikes

 A good property manager can mean you don't have to deal with tenant and unit level problems. 

Good job, Jonathan. What's the average rent per unit?  Occupancy?  How can you force appreciation?

@Jonathan Twombly

Love the story because it shows you (and your partners) did your diligence and acted... Action is the key to the real estate investment game. Great news for you and your team!

@Jon Klaus  We're in the high 90's for occupancy at both properties.  The forced appreciation comes in here because rents were lagging the market at both properties, and we are also doing some small upgrades that drive rents, like replacing worn carpets with vinyl laminate wood-grain flooring rather than new carpets.  Tenants love it and they pay a premium for it.

As for property management, we definitely use third-party management.  In our case, it's Ledic Management Group out of Memphis.

Congrats! 234 units in 6mo is an amazing job! What does the capital stack look like? Are the properties fully funded by the investors or is there debt involved?

What is the exit? Is it to do upgrades then raise rents & sell the properties in 10 years?

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