San Diego Off-Market Six-Unit Multi-Family Development Deal

[Josh Zimmerman]

Investment Info:

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

Purchase price: $1,150,000
Cash invested: $345,000

Sourced this 6-unit property off-market for a client of mine. Property sits on 22,215sqft. lot. Property is a value-add deal, in which client rolled 1031 funds into this property and will look to develop the property from 6-units to 12-units. Property was sourced off-market at a closing prince $200,000 under market value allowing client to cash flow day 1 as well as have equity immediately.

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

The day 1 equity and cash flow the deal was going to be producing based on the enter price.

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

Sourced off-market.

How did you finance this deal?

Bridge- Loan/ 1031 Exchange Funds

How did you add value to the deal?

Looking to develop property by adding additional units, doubling current unit count.

What was the outcome?

Great entrance price generating profitable returns day 1

Lessons learned? Challenges?

Communication is key with seller's needs.