All Forum Posts by: Dimitra Manou

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109 Davis Dr, Perry, FL 32348

Asking: $3.8m
Apartment Building

24 Units

2016 build

3.21 acres lot

100% occupancy

Current NOI $225,808.63

Current Cap 7.06%

12 Units are 2/1 and 12 Units are 2/2.

There is high demand for these units in this city!All 24 units are leased and have been for the last 6 years. There has never been a vacancy and typically there's a waiting list of 15+.

Tenants are required to sign a one-year lease. After that, they typically go on a month to month.
Rents are typically increased by $50/m every year on January.
The property is in turnkey condition and the roof and HVAC systems are original from 2016.

C Class

Cap: 5.84%

Year: 1975

Oct 22 Total rents: $89,889.00

Occupancy: 95%

Price: $12M +3% buyers fee

Seller/Creative Financing

Loan: Fannie Mae | 4.45% | 9 Years remaining (Not assumable new debt required if necessary)

Seller Financing Terms: $7-10M down | $2-5M Note | 12 Months | 6% over 30yr amort

*Seller is open to reasonable creative financing terms with a minimum of 50% down w/seller note.

Investment Highlights

50% of the units have been renovated and current rents are about 15% under market.

There is potential to renovate the remainder of the units at the property and bring current rent up to market rent.

2022 Newly Renovated Property (Interiors/Exteriors)

San Antonio Fastest Growing City in the United States in Terms of Numeric Population

Surrounded by Nationally Acclaimed Retailers/Employers

Property Located Only 5 miles from Downtown San Antonio

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Asking: $14,100,000 

Cap Rate, COC and Total Return: At our whisper price you are looking at over 5% cap rate, over a 7% tax adjusted proforma cash on cash return with over a 2x equity multiple on a 5-year hold and a 6-reversion cap.

Here is the play on the property:

1. Cut the loss to lease- This has been proven over the last 10 leases with new and renewal leases they are seeing a 15.9% increase of lease trade out in addition to fully implementing the amenity fee
   
2. 98% Classic Units - Every unit besides 2 are classics. On those two upgrades they are receiving over $100 premium on top of the loss to lease. The one upgraded unit they just leased was a 2 bed 1 bathroom at $1420.
   

Exit:

We have a model that has a reversion cap of 6 at the end of 5 years. With the business plan that we have laid out in our OM with the debt in the deal room you are looking at least a 2x equity multiple on a 5-year hold.

Debt:

We have several debt options in the deal room. Depending on whether you go with the bridge option or a fixed rate option like the Freddie Floater. Bridge/debt funds will give you more proceeds but Freddie is predictable and able to still offer a consistent and aggressive quote.

There is always an option to assume the current non-recourse Fannie Mae at $7,150,000. 5.2% interest rate with 8.5 years of terms left that is amortizing; loan is in the deal room and price would be about $750,000 off the $14,100,000.

A couple other notes to the deal as well:

While underwriting ensure you consider the following:

• Excellent Physical Condition with Significant Recent CAPEX: Current ownership has recently put over $700,000 in capex…mostly exterior capex and replaced one of the two chillers
  
• HUGE Upside Potential: There is significant remaining upside by renovating the two- and three-bedroom floor plans. Between loss to lease and unit enhancement you will be able to achieve a rental increase between $120-220 per unit.
  
• Additional Other Income Opportunities: There is potential to increase revenue by implementing an amenity fee program for $30 a month, which would include Wi-Fi, pest control and trash. They are doing this on every new lease and renewal.
  
• There are 3 laundry rooms on the property as well that the property owns so 100% of the income goes to you. Right now they are not collecting on this but will have it set up by close. Another $15,000 in income a year.

NC 228 SFR portfolio....

• 228 Doors/145 SFR properties North Carolina with the remaining doors duplexes/triplexes
• Was $24 million, now asking $18.5 million with a fast close
• Current NOI is well over $1million
• Great value add opportunity to increase the NOI
• Title has been opened and is clear on ALL properties
• Expenses are 20% monthly and this includes an 8% PM fee to each PM that is already set up in each town and can stay on after purchase