Dalton GA Portfolio -Multifamily 📈

[Kristine Flook]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $20,623,000

This acquisition Dalton Portfolio a 240-unit, 3 property community conveniently located in the growing Dalton sub-market of Chattanooga, Tennessee. A Class B asset In multi-family, Class B assets are known to yield 12% - 14% returns. In this case, the average rate of return (ARR) is anticipated to be over 21%!

Dalton Beach Club is a 155-unit townhouse community with office built in 1986. The property has a beautiful community pool and a fenced in dog park next to an upgraded office. It is in a beautiful B+ area of Dalton, GA, and is close too many job opportunities including manufacturing and retail. The property is currently ~$250 below renovates market rents.

What made you interested in investing in this type of deal?

Class B IRR over 20%

How did you find this deal and how did you negotiate it?

Relationship

How did you finance this deal?

N/A

How did you add value to the deal?

VALUE ADD PLAN YEAR 1 CAPITAL EXPENSE BUDGET Renovate interiors of 32 units on Dalton Beach Club (91 of 155 units have partial upgrades)Renovate interiors of 20 units on The Valley Address the deferred maintenance Exterior upgrades which include new signage, playground and landscaping.

YEAR 2 CAPITAL EXPENSE BUDGET Complete interior renovations of remaining 32 units on Dalton Beach Club and 12 units on The Valley Swimming Pool upgrade

What was the outcome?

Value-Add in progress

Lessons learned? Challenges?

N/A

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

yes