Howling Plains Apartments in bedroom community of Sioux Falls, South Dakota

[Craig Markhardt]

Investment Info:

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

Purchase price: $2,500,000
Cash invested: $700,000

Two - 12 unit two story apartment buildings with two - 12 unit single garage stalls originally constructed in 2017

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

Recent construction, simple design, and pet friendly materials as well contractor grade finishes.

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

Off Market through a commercial agent

How did you finance this deal?

Portfolio bank financing with a 25 yr amortization and 10 year maturity feature

How did you add value to the deal?

Bringing rents to market, including creating a preventative maintenance schedule, upgrading exterior lighting, and other exterior amenities such as signage and common space for residents to use during summer months.

What was the outcome?

Rent rate increase was expected to average $85 per month, and we have increased on average in excess of $115 per month the following the first round of lease renewals.