I almost had to sue myself. 164 Unit C class apartment complex.

[Bill Ham]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Conyers.

Purchase price: $8,882,000
Cash invested: $1,776,400
Sale price: $11,950,000

Briar Creek Apartments.
164 Unit C class apartment complex.
This is was bought in as a portfolio along with Ashford Brook Apartments. My management team and I renovated the asset as well as improved the operations. By renovating and increasing the NOI we sold for at a substantial profit. This was set up as a GP/LP structure.

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

This deal had expenses that were well above market. I was able to cut expenses and increase cash flow.

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

Realtor relationship in the market.

How did you finance this deal?

Fannie Mae 10 Year Fixed.

How did you add value to the deal?

I cut the excessive expenses such as payroll and overspending on materials and vendors.

What was the outcome?

The NOI increased significantly. This in turn increased the value. My partners and I sold this deal for a great profit after a few years.

Lessons learned? Challenges?

This property had a sewage lift station that failed and flooded a creek with raw sewage. Total accident but the cleanup and repair to the lift station was over $120K. I was an owner of the property and the owner of the management company too. My partners wanted the management companies insurance to cover the spill. The policy I had on my insurance company didn't want to pay. I the "owner" almost had sue me the "management" to get the management policy to pay. I almost had to sue myself!