Just Closed a 240 unit Apartment Complex

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Just Closed a 240 unit Apartment Complex

Brian Adams
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes

I am happy to report that today I closed on a 240 unit apartment complex in Atlanta, GA that I bought for $9.4 million and it appraised for $9.9 million. Capital raise was $3 million and my investors are super excited!!

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Tony SanFilippo
Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
10y

@Brian Adams

Congratulations!  Would you mind sharing some details, rents, debt service how you put the deal together?  Thanks in advance and great to see you getting deals done.

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y

    Congratulations!

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    Skyline Properties
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    0Reply
  • Brian Adams
    OP
    Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @JD Martin, thanks appreciate it!!

    0Reply
  • Bob Mason
    Pittsburgh, PA · Member since 2015 · 58 posts · 23 votes
    10y

    Awesome work! Hope everything goes well!

    1Reply
  • Tony SanFilippo
    Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
    10y

    @Brian Adams

    Congratulations!  Would you mind sharing some details, rents, debt service how you put the deal together?  Thanks in advance and great to see you getting deals done.

    5Reply
  • Lisa Wade
    Nashville, TN · Member since 2015 · 17 posts · 5 votes
    10y

    Wow!!! Congratulations!

    0Reply
  • Brenda Johnson
    Residential Real Estate Agent · Mabelvale, AR · Member since 2011 · 6 posts · 0 votes
    10y

    That is awesome Brian, is that your first deal or severealist

    0Reply
  • Stephen FrancoPro Member
    Scranton, PA · Member since 2016 · 201 posts · 44 votes
    10y

    awesome

    0Reply
  • Luke F.
    Littleton, CO · Member since 2015 · 59 posts · 14 votes
    10y
    Originally posted by @Tony SanFilippo:

    @Brian Adams

    Congratulations!  Would you mind sharing some details, rents, debt service how you put the deal together?  Thanks in advance and great to see you getting deals done.

     Seconded, especially from your great location.

    0Reply
  • Brian Adams
    OP
    Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @Tony SanFilippo, the deal was listed with a broker. 

    I did a Fannie Mae loan execution. The LTV was 83%.

    This is a value add deal and anticipate holding the asset for 3 to 5 years. I decided to go with a 7 year adjustable rate mortgage. I locked the base interest rate at 3.43% and the index floater is based on the 1 month LIBOR or a going in rate at 3.869%. With potential interest rate risk I do have the option to lock the rate into a fixed rate loan product.

    This is my 4th syndication and work with investors who are looking for passive income without the hassle of running a large deal like this. 

    I live 40 minutes south of Philadelphia, PA and have a local 3rd party management company in Georgia who will manage the day to day operations. 

    I am very hands on operator and work very closely, in partnership with the management company to help me execute my value-add strategy on this asset.

    Hope the above is helpful to you my friend...

    19Reply
  • Brian Adams
    OP
    Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @Brenda Johnson, thanks, this is my 4th syndication deal.

    0Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    10y

    Very nice, @Brian Adams are you having to do any renovations or did it come mostly ready out of the box?

    I'm not too familiar with multi-family, but I did enjoy reading your part on how you financed the deal. I thought that was very interesting.

    0Reply
  • Rami W.
    Rental Property Investor · CA · Member since 2011 · 82 posts · 32 votes
    10y

    @BrianAdams If you are able to share, what was the minimum investment you required per investor and what was the actual lowest an investor contributed?

    And a big congrats! I can't wait to start getting on on deals like this.

    Thanks!

    0Reply
  • Brian Adams
    OP
    Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @Luka Milicevic, thanks for your message and I see you are an Accountant. 

    In a separate BP thread I shared my story on how I quit my CPA gig to buy large apartments like these. 

    You might be able to relate to this as I have been in your shoes before with tax season, etc. Here is a link for ya: I quit my CPA Job to buy Large Apartments

    Re: renovations, the bones and exterior of the asset are solid. Current occupancy is 93% and when units become vacant we will perform a unit turn upgrade program including new flooring, painting the cabinets, new hardware, new lighting, new ceiling fan, etc. Currently the seller is doing this exact same strategy and achieving a $50 to $75 rent premium on upgraded units. Anticipate turning 50 to 60 units in the next 18 months with this approach to grow out NOI.

    4Reply
  • Brian Adams
    OP
    Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @Rami W., thanks for your message. 

    Most of my investors funded $100k+. However in my PPM that was prepared by my securities attorney, the minimum was $50k to get into the deal and only open to accredited investors as defined by SEC.

    0Reply
  • Jose R.
    Miami, FL · Member since 2015 · 99 posts · 32 votes
    10y

    That's great Brian.

    0Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    10y

    @Brian Adams

    I just read through the link you sent to your post on how you quit your job. That's very inspirational. I'm currently working full-time in financial accounting. 

    I actually attended a richdad conference once and the speaker was also a retired CPA that had the exact same light bulb moment you did. He said he was seeing how much his clients were making and he decided he could do the same. 

    I'm planning on making the transition into full-time real estate at some point. I am starting slow, my goal is 1 deal/year, and ramp it up once I get more experience. It makes more sense than working in a cubicle.

    3Reply
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Brian Adams

    Congrats. That is fantastic news.  You earned every penny of that acquisition fee!!

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    0Reply
  • Brian Adams
    OP
    Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @Gino Barbaro, you got that right!! 

    0Reply
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Brian Adams

    Thanks!  I don't get that much right,  but I do know how much work, effort and risk that went into this deal.

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    1Reply
  • Anthony Gatt
    Philadelphia, PA · Member since 2015 · 16 posts · 1 vote
    10y

    Hey @Brian Adams, great work! 

    Btw...I grew up right near you - in Westtown.

    0Reply
  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    10y
    Originally posted by @Luka Milicevic:

    @Brian Adams

    I just read through the link you sent to your post on how you quit your job. That's very inspirational. I'm currently working full-time in financial accounting. 

    I actually attended a richdad conference once and the speaker was also a retired CPA that had the exact same light bulb moment you did. He said he was seeing how much his clients were making and he decided he could do the same. 

    I'm planning on making the transition into full-time real estate at some point. I am starting slow, my goal is 1 deal/year, and ramp it up once I get more experience. It makes more sense than working in a cubicle.

     Same thing happened to me.  I saw all the tax returns I was doing for clients and realized that it could be a pretty good thing and I knew I wanted in on it.

    Podcast Guest on Show #244
    0Reply
  • Jean-francois Ndomb
    Real Estate Investor · Kalamazoo, MI · Member since 2015 · 120 posts · 37 votes
    10y
    Great work and congrats.
    0Reply
  • Michael Powell
    Rental Property Investor · Sugar Land, TX · Member since 2014 · 65 posts · 33 votes
    10y

    @Brian Adams I read about your story from working long hours as a CPA to having that 'aha moment' where you said to yourself, my clients are doing this, why not me?  And then it seems the rest is history.  It was truly inspiring.  Congratulations on all the success from your action plan.

    When I read about deals like yours like closing on a 240 unit apartment, it gives me the enthusiasm to pursue my first multifamily and continue to move up.   As I told @Gino Barbaro in his thread about busting through your limitations, it's invigorating to see these success stories happening.  And on your terms.  

    Alright, back to business...

    1Reply
  • Account Closed
    Real Estate Investor · Rancho Santa Fe , CA · Member since 2016 · 323 posts · 107 votes
    10y

    Hi @Brian Adams i was just looking at some multifamily opportunities in Macon, i am totally new to investing in georgia, we should connect. 

    and congrats 

    1Reply
  • Hubert Washington
    Investor · Jacksonville, FL · Member since 2016 · 97 posts · 90 votes
    10y

    @Brian Adams

    Congratulations on your 4th syndication deal and on acquiring 240 more doors! Thanks for sharing your success with the community! If you don't mind me asking - 

    1. What was the biggest obstacle you had to overcome to get the deal done?
    2. What is the biggest lesson you learned from doing this deal?

    Thanks in advance. I'm looking forward to your responses!

    THINK BIG...THINK BIGGER...THINK MASSIVELY!

    1Reply
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