176 Unit Closed - Savannah, GA

[Anders Jacobson]

Investment Info:

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

Purchase price: $27,500,000

176 Unit in Savannah, GA. We purchased this property off market at a 16% discount. We were able to assume the sellers loan with extremely favorable terms: 4.6% with 9 years of interest only payments. Rents were $450 below market when acquired.

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

Found it through a close broker relationship. Broker called an owner and sparked interest in seller. We negotiated off market on price and terms.

How did you finance this deal?

We assumed the sellers debt. Terms were great: 10 Years, 4.6% w/ 9 years of interest only. Purchase was contingent on us assuming the loan.

How did you add value to the deal?

Property doesn't need a ton of work but we are doing light turns on the units (countertops, light fixtures, painting cabinets), exterior paint, lighting and landscaping.

What was the outcome?

Unit rents have already increased from $1200 avg/mo to $1500 avg/mo (our pro-forma #'s.). We were extremely conservative underwriting this deal and it has an extremely high upside.

Lessons learned? Challenges?

There are deals out there and sellers that want to sell. Be willing to get creative and leverage your broker relationships. We spent 2 years building this broker relationship before closing a deal together.