Updated over 4 years ago on . Most recent reply
22 unit JV in Saginaw, MI
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $814,000
Contributors:
Vince Gethings
Bauer View is a 22 unit multifamily asset located in Saginaw, MI. This one was a JV with members of Tri city Equity Group and Red Hawk Ventures, led by the owner of MDL, Mike Loomis. The long term play here is to bundle this with our existing 52 unit portfolio in Saginaw, and market them together as a 76 unit. This should open up the buyer pool to a more competitive set.
What made you interested in investing in this type of deal?
This allows us to expand our portfolio in the region from 52 to 74 units, and take advantage of economies of scale.
How did you find this deal and how did you negotiate it?
This was listed on loopnet.
How did you finance this deal?
Community bank
What was the outcome?
We are partnering with MDL to implement our business plan. The biggest value add will come from adding in unit laundry and turning the laundry room and storage area into an addition unit. Since there is 1 laundry room per 11 unit building, we will be adding 2 units, bringing the total to 24 units once we are stabilized.
Lessons learned? Challenges?
This one took a lot longer to close than anticipated due to the lender's COVID related processing backlog. One thing we could have improved on was to have other local lending options lined up sooner.
