30 unit JV deal in Alaska!

[Stephen Predmore]

Investment Info:

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

Purchase price: $3,080,000

Property Overview
• 30 units (5 buildings)
• 96% occupancy
• Below market rents by $200+
• Mom & pop property owners
• Ample parking
• Other income through covered parking and storage
• Major CapEx already done
• Prime location across the bridge from JBER (Air Force & Army joint base)

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

Looking to scale up from single family rentals.

Alaska – Why We Love It
• Top quintile for GDP growth in 2022; 4th largest cargo airport worldwide
• Anchorage ranked #23 best city to live in USA in 2022
• Alaska's economy is driven by a range of industries, including oil and gas,
healthcare, fishing, and govt
• Largest US commercial fishing industry; larger than top 10 combined
• 25,000 active troops stationed in 9 military bases
• 20% of the land mass of the Lower 48; 2x larger than TX

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

Networking with other multifamily operators. Facebook groups, mastermind groups.

How did you finance this deal?

Joint Venture deal structured with over 20 investors. FNMA debt 2.6M.

How did you add value to the deal?

The Opportunity
• Current owners are tired of running the property and want to redeploy capital elsewhere
• Complete remainder of deferred maintenance in common areas
• Implement better tenant management through professional property management, ancillary fees, and operational excellence
• Burn off loss-to-lease through re-leasing at market rates

What is the projected outcome?

15.4% Internal Rate of Return
9.1% Cash on Cash
2.16x Equity Multiple
5-7 year hold

Lessons learned? Challenges?

TBD :)