Large multi-family (5+ units) commercial investment investment in Chesapeake.
Purchase price: $9,500,000
Cash invested: $2,800,000
This is a larger 104 unit, multifamily Syndication I'm a General Partner and Key Principal on.
We just closed on this recently. The cash invested of 2.8 was LP investors and GP investors combined to acquire the asset.
Asking price was just over $11,000,000
What made you interested in investing in this type of deal?
Cashflow and offset risk with the 100 plus doors, and value add component.
How did you find this deal and how did you negotiate it?
A partner brought it to me, there were 11 bids and 10 offers and we got the deal.
How did you finance this deal?
Bridge debt at 4.85%, closed right before things blew up with the virus. Literally within hours.
How did you add value to the deal?
We are finishing the renovation on 60 of the 104 doors.
What was the outcome?
Still in progress
Lessons learned? Challenges?
It took us a little longer to raise capital as the virus started to affect things but we got there with reserves. We also had to have a flood stage evaluation and recertification done but this saved us over 100K in valuation in the end, good move here.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, we worked with Mark at Northmarq Commercial Lending
What is the current occupancy on the complex?
How will you go about renovating those 60 units? Will you do the unoccupied ones first and move current tenants in them?
Congratulations on the close!
We are currently receiving order on supplies and will renovate now through the rest of the year.
Occupancy at purchase was just under 90%.
There are several of the units we could rent but are beginning to renovate instead.
The first 30-40 were renovated before we bought and rents we’re raised so we are confident in finishing basically where they left off.
A partnership split opened this opportunity up to our group.
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