Large multi-family (5+ units) commercial investment investment.
Purchase price: $9,200,000
Cash invested: $3,385,500
120 Unit Apartment complex in Greenville, TX. About 20-30 minutes outside of Dallas comprising of a mix of studio, 1 bed/bath, 2 bed, 1 bath, and 2 bed/bath apartments.
The equity capital was raised via passive investors looking to become Limited Partners in large multifamily real estate investments. We used a 506b offering, meaning they had an existing relationship with our team prior to investing.
What made you interested in investing in this type of deal?
Proximity to Dallas, TX, projected growth rate in that area, partners involved.
How did you find this deal and how did you negotiate it?
How did you finance this deal?
How did you add value to the deal?
Rahab, RUBS program, gym, tenant screening, etc.
What was the outcome?
Lessons learned? Challenges?
Dallas is a great market but if you want to avoid the high property taxes buy outside of the city limits but still close enough to support the commuter demographic.
@Ashton Levarek this is awesome! Thanks for sharing!
This has been a great deal to be a part of. Great location, great asset, great team!
Always like those cash-flowing assets day one. Not a huge lift. Adding-value, increasing NOI while providing a return day one. They aren't all like that! But this one was fairly smooth, especially for 2020.
The biggest hurdle of course was working with financing/seller as occupancy/collections numbers shifted throughout 2020. Many a T-12 for properties purchased in 2020 show interesting numbers :)
Fortunately a T-3 was the final validation. A good solid all-arounder.
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