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Updated over 3 years ago on . Most recent reply

User Stats

37
Posts
8
Votes
David L.
  • Charlottesville, VA
8
Votes |
37
Posts

Mom-and-Pop Owned Unit in Newly Sold MF Complex

David L.
  • Charlottesville, VA
Posted

Multi-family investors, I put a single condo unit under contract to buy, within a 200+ unit complex that has about 80% of the units owned by an LLC, which they operate as apartments. Days after securing the contract on my unit I found out the corporate-owned units were all just sold; transaction closed and now part of public record.

Based on the average price per unit that the new corporate buyer just paid in acquiring the majority of the rest of the complex, I should theoretically have significant instant equity on my unit, as soon as I close.

So my questions are:

  • It seems like a no-brainer to me that the managers/representatives of the entity that just acquired the majority of the condo/apartment complex ought to be interested in adding another unit to their holdings (same complex / same building as their own units).  Am I overlooking anything that might cause them to feel otherwise?  They already have onsite management and would appear to be subject to any local/state requirements that apply to operating an apartment complex of the applicable size.
  • Assuming they would be interested in owning additional units in the same complex they just acquired, is there any reason why they generally wouldn't be willing to pay the equivalent price per unit that they just paid a month ago for the rest of the complex?
  • If I decide to keep (BRRR) the unit that I have under contract, rather than flip it, are there any particular pitfalls I need to be mindful of, owning a unit in a condo complex that has a single majority owner like this? For example, if they presumably want to make improvements to their new investment, improving common areas, etc., can they / are they likely to force through a special assessment that will apply to all owners, through the HOA board that I'm sure they'll control?

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