Multifamily real numbers sharing #3

[Cindy Shen]

As an effort to share more, I'm sharing an update on a very interesting building in my portfolio.

This is a 14 unit Multifamily. The initial asset acquisition process was quite long and hard. The due diligence took almost 3 months with many competitors and multiple rounds of negotiations. In the end, our experience in vacating large scale problematic buildings, adding value to poor assets and completing complex construction projects landed us the building with 90k per door whereas the market is 200k per door. The expected ROI at 5 year exit for this asset was 20%+.

Currently, our architect has confirmed that we can construct at least two additional units, and can apply for a 16-18 unit permit to add even more additional units.

Right now, building measurements and architectural drawings are being done. Also, 90% of the building has been vacated. Depending on the permit result indicating how many additional units can be built, the expected ROI could be adjust upward as well.

We actually got on the news for the whole eviction process. Pretty much all done within 3 month of closing. Last stretch.