Investment Info:

Large multi-family (5+ units) commercial investment in Tulsa.

Contributors:
@Mike Vann  

Trident Multifamily - BP

Trident Multifamily

Atlanta Terrace is our 4th asset in the Tulsa MSA and less than 1.5 miles for 2 of our other properties, this is giving us great scale in the market. After months of negotiation through 2020, we completed our Reg D 506(b) offering/syndication and closed on this property in November 2020. Having a presence in the sub-market we identified that the rents were well below market and the property was not operating efficiently, perfect light value-add opportunity.

How did you find this deal and how did you negotiate it?

Great broker relationships and doing what we said we would do.

How did you finance this deal?

Freddie Mac 5-year Hybrid with 1-year Interest Only and zero pre-pay after year 2.

How did you add value to the deal?

In addition to moving rents to market and operating the property more efficiently, we uncovered an opportunity to build out 4 additional units.

OK, I'll bite - What does 102 units in Tulsa go for?  What sort of REAL/ACTUAL CapRate is it?

Great location and pickup. Thanks for sharing!

Originally posted by @Steve Morris :

OK, I'll bite - What does 102 units in Tulsa go for?  What sort of REAL/ACTUAL CapRate is it?

Hi Steve. We were right at a 5.5% cap on the T-12, but as a "price per pound", we're just over $42k/door which we feel is a great entry point for this asset.

Originally posted by @Curtis Yoder :

Great location and pickup. Thanks for sharing!

Thank you Curtis. I see you're local, let me know if you want a tour at some stage.

"we're just over $42k/door which we feel is a great entry point for this asset."

$42K won't buy you a literal door in Portland Metro.

@Carl Suverkrop

Congratulations!

Other than below-market rents and identifying additional 4 units to add, what other value-add was discovered for 42K per door? Any rehabs/improvements?

@Jai Reddy

Yes sir, we're going to be investing a little over $600k back into the property with exterior improvements, amenity upgrades and then will also implement an interior turn package of 2-tone paint, counter resurface, updated fittings & fixture along with appliances and flooring as need. The previous owner had replaced 100% of the HVAC units onsite in 2017, upgraded >90% of the units with LVP flooring along with approx 50% of the appliances within the last 36 months.