1031 from 3 unit into 16

[Jamie Rose]

Investment Info:

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

Purchase price: $1,150,000

Partnered up on a 1031 into a mid size commercial MF in Anchorage (16 units) - no further cash required due to 1031.
We've invested in renovating older 1970's era apartments to grab better tenants - and better rents. This should be a great long term asset for us, already on a good footing.

This was found on the MLS - by knowing our market in great detail - I could tell this was an opportunity hidden in plain sight. We timed the market well also - I could see commercial prices still undervalued - and we picked this up at a 20% discount on today's prices - so over $200k in very quick equity gain. We also timed debt markets well - sometimes the stars align - where experience and preparation meet with taking action. We sold our subject 1031 property before even knowing what we'd buy.

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

Wanting to grow in scale - and I saw the opportunity to trade a hot asset - residential mf - for an under appreciated one - commercial mf -

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

On market for a long time actually - which created favorable options for us - I am an agent that does this work - so I did my thing!

How did you finance this deal?

Local credit union financing - we got a 15yr fixed rate loan on a 20yr amortization -

How did you add value to the deal?

Understanding the market - bought it under valued - came in with additional capital to improve units that desperately needed updating. Improved management - and technology - it's a story still being written.

What was the outcome?

We've got something where we're in a great position - to see long term appreciation on the asset - and cash flow throughout the term - it's a win already - but really something I think in 10 years we look back and are amazed at.

Lessons learned? Challenges?

Biggest lesson - where others see problems - look for opportunity.

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

Yes!
Agent - Jamie Rose
Property Manager - Overwatch @Chris Smock
Lender - MVFCU