We closed on another large Multifamily (and a Land) in SA, TX

[James Kandasamy]

Dear BPers,

We are proud to announce that we closed on another large Multifamily apartment in San Antonio. This is 115 Units fully rehabbed property with an average occupancy of 80% and an expense ratio of above 64%. The occupancy is low due to mismanagement, the recent completion of rehab by the seller and lack of marketing. The property also has a severe parking ratio of 1.06 vs. 1.6 of what is needed for better tenant demographic. We decided to buy the land beside the property and build 40-50 parking spots plus amenities such as dog park, playground, walking trail etc. The rent increase potential is huge with the land due to amenities and potential acquisition of better tenant demographics. It was a complicated transaction as we have to deal with two different sellers, two contracts. Both contracts were written with independent contingencies. We closed both deals on the same day. We got a conventional Bank loan so that we can refinance the deal within 2-3 years and take out the equity. We acquired the property as super low price. The location is great at the junction of I10 and 410. Furthermore, it's fully newly rehabbed exterior and interior.