MultiFamily Acquisition at a 7 Cap with Huge Value Add

[Robert Politzer]

Seeking an additional $300K in Equity for the acquisition of a 25 unit, 29,000 sf multifamily property in northeast Baltimore at a cost of $2,325,000.  The property was recently rezoned to R-9 that allows for up to 164,000 sf of development rights.  We have already raised $400K in Equity and have secured Debt financing at 4.75% through Freddie Mac.  We are paying an 8% Pref and the property will generate a 10% Cash on Cash Return in Year 1 and 15% in Year 2.  We have a three year exit strategy that will involve refinancing for the development of the full building rights.  The area is in a heavily Orthodox Jewish neighborhood with strong housing demand.