164-Unit Closed in Phoenix, AZ!

87 Replies

I am excited to announce the addition of Ridgepoint Apartments to our Phoenix portfolio. This is a wonderful, mid-80'es construction 164-unit. Original interiors will be upgraded, and the asset will be re-positioned. Yardi currently rates this location and improvements both as B-. Personally, I think as it sits, this is a Class C. When we are done with the re-positioning in 24 months, this will be a Class B, with Class A finishing surfaces. We anticipate being able to improve revenue by + or - $300 per door...huge value-add.

Huge thanks to my partner, @Sam Grooms  for all of the work he continues to do. Huge admiration and gratitude to our entire team, and all of the folks who believe in our vision!

Ridgepoint, true to form, was yet again closed in under 45 days. This is our 3rd acquisition in 10 months, totaling $40M by purchase price. We are incredibly bullish on Phoenix for years to come!

Meeting our regional at the asset this morning - the work begins!

Feel free to reach out with questions, guys. I will lay out more of the details on the blog in coming weeks, but we can dig in here as well.

Originally posted by @Candace Price :

@Ben Leybovich

Congratulations!

How did you find out about this deal?

What was the occupancy rate?

 Hi, Candace. The current occupancy is 95%.

This was a listed property.

@Ben Leybovich Congratulations! Feel free to shoot me a message if youre interested in a national general contractor firm that is well priced and specializes in this type of work for large scale apartment buildings.

Originally posted by @Justin Hannah :

this is awesome!  Thank you for always posting information on your deals. Are you bullish on Phoenix for all asset classes?

 Justin, I am bullish on Phoenix, as a blanket statement. However, I do not believe that there is another asset class quite as attractive as large multifamily.

@Ben Leybovich wow I'm impressed and inspired I'm looking to find how you came across this deal . How much you had to put down and your cap x how you had to raise ? Congratulations πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰

Originally posted by @Greg Scully :

@Ben Leybovich - Congratulations.  Big fan of your podcast with @Scott Hollister and @Sam Grooms .  Looking forward to season 2.

Thanks, Greg! Now that things have slowed down a bit, we need to sit down and record Season 2. Hard to make time for that stuff any more...:( 

Originally posted by @Ricardo L Knight :

@Ben Leybovich wow I'm impressed and inspired I'm looking to find how you came across this deal . How much you had to put down and your cap x how you had to raise ? Congratulations πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰πŸŽ‰

Ricardo, to answer your questions:

This was a listed property with the broker we've bought from before. This property went through the entire, as I call it, dog and pony show, with several rounds of offers, B&F, seller interviews, the whole 9.

The CapEx budget to be deployed in the first 24 months is over $2.5M, which includes interior and common areas.

We raised $7.5M of equity for this project, which included the down-payment plus about $1.2M of reserves of all sorts. 

Does this answer your questions?

@Ben Leybovich congrats! Looks like this is going to be a great project and I’m looking forward to reading the blog on it. Besides the interior unit improvements that I assume are included in your plan to reposition and bump rents, are there any other big capex items or exterior things you are renovating or adding to bring more value to the deal?

Originally posted by @Bill Goodland :

@Ben Leybovich congrats! Looks like this is going to be a great project and I’m looking forward to reading the blog on it. Besides the interior unit improvements that I assume are included in your plan to reposition and bump rents, are there any other big capex items or exterior things you are renovating or adding to bring more value to the deal?

Bill, we are obviously going to paint the exterior. We are building a gym, installing a dog park, and updating the office, which will include a business center for resident's use.  We are doing a big upgrade to the pool, as well as several other areas.