Value Add Multifamily with 14% Targeted IRR/2X Equity Multiple

[Billy Miller]

Investment Info:

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

Purchase price: $1,870,000

Madison Apartments is a C Class Value property located in Jonesboro, AR. There are 26 Units, 4 1bd/1ba, 6 2bd/1.5ba townhomes, and 16 2bd/1.5 bd apartments. The property is currently 100% occupied. Our value play with be to spend and estimated $300K in CapEx, add revenue through a RUBS, and increasing rents to market levels. We are securing bridge debt to implement our business plan to help increase the value of this property.

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

I chose this property because it is a great value play in a growing market in NE Arkansas. Jonesboro is one of the fastest growing cities in Arkansas. There is a great opportunity to force appreciate and yield high returns.

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

I found this deal listed on Crexi.

How did you add value to the deal?

I am going to force appreciation with a $300,00 Capex, and implement a RUBS. I am also going to increase rents to market level.

What was the outcome?

Still in the process.