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Updated over 1 year ago,

User Stats

42
Posts
26
Votes
Nico Salgado
  • Investor
  • New York
26
Votes |
42
Posts

Multifamily property in the greater Tampa MSA

Nico Salgado
  • Investor
  • New York
Posted

Investment Info:

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

Purchase price: $5,850,000

This is a 2 property, 44 unit portfolio in Lakeland FL

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

I am a multifamily investor, always seeking opportunities in the greater Tampa MSA. This portfolio was a large acquisition for my team but we pulled it off!

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

I was tracking this deal off market for a bit because I knew the seller. Yet I wasn't able to get it under contract until it hit market. I was lucky in that we purchased this portfolio in the Fall of 2022 right in the midst of the unprecedented interest rate hikes. This left a lot of buyers "pencils down" and I had less competition than usual.

How did you finance this deal?

We used a federal credit union to purchase the 16 unit and a local bank to purchase the 28 unit. Both with different terms, and both pretty aggressive at the time of purchase. They liked these assets and believe strongly in the local market.

How did you add value to the deal?

We renovated the majority of the units at this point and we are near completion with our beautification plan to the grounds.

What was the outcome?

We are currently leading the area in rents. We have our 2 beds renting at 1400/month plus 50 in RUBS.

Lessons learned? Challenges?

We learned that the first year of acquisition is typically very challenging and we can experience higher than normal turnover and delinquency because we did not place tenants. Many tenants were placed by prior ownership who may have been just trying to keep occupancy up for sale rather than place good, paying residents. We also got hit with the dreaded insurance bill that doubled this past year. That being said, we are still cash flowing, even given those aforementioned challenges.

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

We had a great experience working with Mark Savarese, Dakota Brown and the team at Franklin St. I highly recommend using them!

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