Other buy & hold investment in Mitchell.
Purchase price: $850,000
Cash invested: $337,500
The Johnson Block is a 52,000 SF, 4 story mixed-use retail/residential property in downtown Mitchell. 19 units, with 16 residential and 3 commercial. Capital improvement plans for up to an additional 3 residential units to be built out within 6-9 months, with an additional community room, updated laundry facilities that will generate an additional 24% increase in gross income upon re-stabilization. Following completion of phase 1 improvements, will update exterior facade with lighting, new color, signage and windows.
What made you interested in investing in this type of deal?
I am very familiar with this type of property with my background and interests in architecture, plumbing and mechanical, banking and finance as well as living in the penthouse condo in downtown Sioux Falls that was a total gut rehab of a 112 year old concrete grain elevator of which I was part of the project.
How did you find this deal and how did you negotiate it?
Word of mouth, contacted owner directly and used their real estate agent to put the deal together.
How did you finance this deal?
Traditional bank financing with a 10yr balloon mortgage with a 20 year term
How did you add value to the deal?
Value add will be to complete the renovation of 1 off-line residential unit and add three additional residential units located in unused areas of the building. We will also add a community and exercise room, vending machines and update the laundry facilities.
Nice work Craig. What DT Sioux Falls building was the 112 year old grain elevator?
@Craig Markhardt thanks for sharing! Looks like an awesome project, nice work!
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