Over 200 unit apartment complex closed!

[Paul Williams]

Investment Info:

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

Purchase price: $13,000,000

Key principal and asset manager for over 200 unit apartment complex. I syndicated this investment.

What made you interested in investing in this type of deal?

I wanted to scale up from smaller properties

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

It was originally on market, which is how we found the deal. Placed an offer and built a relationship with the seller and broker. It did not sell and went off market. Later on the broker contacted me and asked if we were still interested. After many months of negotiations, we were able to get it closed. Now paying quarterly distributions to investors.

How did you finance this deal?

Agency loan assumption at 4.29% interest.

How did you add value to the deal?

Curb appeal was terrible- broken/missing rotted siding, roofs were in really bad shape and occupancy was 80%. Repaired/replaced and painted all exteriors, replaced roofs, resurfaced asphalt parking lots and got the occupancy to 95% and delinquency down.

What was the outcome?

Property is running like a well oiled machine and we are paying quarterly distributions to investors.

Lessons learned? Challenges?

Stay persistent and be patient. We could have purchased the deal earlier for a higher price, but that would have been to our disadvantage.