Tucson, AZ - 94+17 Multifamily Complex

[Charles Wainer]

Investment Info:

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

Purchase price: $13,600,000
Cash invested: $7,200,000

The market price was estimated at $19MM, acquired for $13.6MM, 94-unit multifamily complex, 4 buildings, built in 1972. It is a great location, only blocks from the University of Arizona. Tucson has jobs and is growing. Robust sponsor team with 1800 doors on the portfolio. Capex's budget is $2.2MM. Closing March 2024.

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

Great purchase price and value, excellent location, planned exit strategy.

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

One of the partners found it.

How did you finance this deal?

Agency loan for 70% LTV, sponsors contribution, and syndication.

How did you add value to the deal?

Will spend $2.2MM in capex, including deferred maintenance, upgrades and renovations.
Will convert 17 4b2b to 34 2b1b adding $1.4MM in valuation.

What was the outcome?

Buy and hold, 3 to 5 years, refi or selling at term.

Lessons learned? Challenges?

Look for value, very conservative underwriting, and an experienced team with a proven track record.