117-Unit Value-add in Phoenix Closed Today
Ladies and Gents,
We don't do too many deals, but when @Sam Grooms and I do a deal, it's something special.
Today we closed on 117-unit in Phoenix's South Mountain neighborhood. The complex is named South Mountain Square.
Some Details:
- Purchase Price: $10.75M
- Reno Budget: $1.5M
- Per sq.ft. Blended Price: $140/sq.ft.
- Financing: 70% LTV on the PP and 100% LTV on the Reno
- Equity Raise: $4.5M
- Unit Mix: Essentially 50/50 of 1x1 and 2x2
- Value-Add: $300 per door +
- Going-in Cap Rate on T12: 4.1%
- Cap Rate projected by end of Y1: 5.2%
- Cap Rate projected by Y3: 8.25%
- 5-year target IRR: 17%+
- 10-year target IRR: 14%+
- In-place LTL to reno Bump Ratio: About 65/35
I want to thank our many partners in this deal. I am very bullish on this acquisition. We will do very well at South Mountain Square.
Feel free to reach out if anyone has questions.