Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
I am best and final on a very large deal and have a good shot at taking a 600 unit deal down via a syndication.
Background - I have bought and sold over 1000+ units and taken deals from LOI to close on several 200 to 300 unit deals before.
The number of units on this one deal though is triple what I am used too.
My guess is it will be the same process as my other syndications, but for those experienced operators who have closed 600 units in one deal, just want to know if there is anything else I need to know about.
I so appreciate this BP community and the knowledge share that goes on.
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
9y
Will Crozier was a guest on the Old Capital Lending podcasts and he has done some 500-600 unit apartments. Because of the volume of stuff he had to buy for these large complexes, he ended up starting an import business where he imports flooring and fixtures, etc, from China. I guess my point is that anything you can cut price on will be exponential since you're dealing with so many units. Sorry but nothing to help you get past best and finals but if you get the deal this is something to consider.
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
9y
Will Crozier was a guest on the Old Capital Lending podcasts and he has done some 500-600 unit apartments. Because of the volume of stuff he had to buy for these large complexes, he ended up starting an import business where he imports flooring and fixtures, etc, from China. I guess my point is that anything you can cut price on will be exponential since you're dealing with so many units. Sorry but nothing to help you get past best and finals but if you get the deal this is something to consider.
Rental Property Investor · Sacramento, CA · Member since 2016 · 267 posts · 214 votes
9y
@Brian Adams Hi Brian, congratulations on making it to the best and final ! A few gentlemen in my office were involved with a 600+ unit deal in 2016. While they weren't operators, I didn't hear of anything major that was different for the deal as compared to 200-300, other than a couple of zeros.
@Kenneth Reimer, thanks. No real concerns as each deal always has a wrinkle or two and as the operator we just need to figure things out to get the deal done.
Just want to make sure I am ready to go if this deal moves forward.
Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
9y
Congrats @Brian Adams You will have to let us know if you find anything special. I would think that there will be some extra zeros, and little savings or expenses can be huge when multiplied out. Keep us informed as how it goes.
Minneapolis, MN · Member since 2014 · 332 posts · 288 votes
9y
Brian Adams nothing really different than taking down a 200 unit deal. Just bigger numbers. I recently closed 548 on behalf of the private owner/fund I work for.
Rental Property Investor · Austin, TX · Member since 2017 · 254 posts · 265 votes
9y
Yep, you just have more bodies (staff) to oversee but it'll scale the same way.
The nice thing with the economies of scale are more and better quality staff. If you don't already, and with your experience I'm sure you have, you will be able to afford a FT bookkeeper should you choose.
Commercial Mortgage Underwriter / Broker · New York City, NY · Member since 2016 · 193 posts · 75 votes
9y
@Brian Adams I've often found the 500+ unit larger deals easier to close than the smaller ones. I guess you could chalk that up to the economies of scale argument. Plus the larger deals will get the attention of senior management/executives that will want to make sure the deal closes and will gladly assist working through any "wrinkles". At least that's been my experience on the finance side.
Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
9y
Congrats @Brian Adams That is very exciting! When you're in ATL to walk the property if you want a second set of eyes with you I'd be happy to walk it and share my knowledge in construction and MF. As a MF owner/operator and past owner of a construction company I often see things in a different light than the inspectors do.
If you were able to iron our the "wrinkles on the last 1000+ units I am sure this will go just fine.
After doing several of these large deals, I followed my own system and process. My teams walked every unit and they touched every lease, had my contractor, loan broker and other folks visit the asset to give me their assessment.
Lots to get done before the closing and there will be surprises and some sleepless nights, but everything right now is looking good.