Waco Centre Apartments (LP)

[Daniel Frank]

Investment Info:

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

Purchase price: $9,850,000
Cash invested: $100,000

96 unit apartment complex located next to Baylor University in Waco, TX.

[Bruce Lynn]

Are you still in this one?  Looks like it traded in 2022.  If you bought in 2018 and sold in 2022, you probably made out like a bandit.

Waco seems to have been pretty tough place to make money the past couple of years, so hopefully you were in that group.  If you are part of the 2022 purchase, how's that going?  Is it mostly student housing, since it is across/near campus?  Fixed or Floater on loan if you bought in 2022?  If you were 2022 group, that is tough leverage.  How's that working out?  Might be pretty tough deal.

I like Waco, but don't know enough about it to invest there.

[Gregory Schwartz]

The Waco market has stronger than anticipated numbers. There has been strong population growth, consistent appreciation, and a robust economy. It is seemingly still relatively affordable to buy an asset close to a major university at $100k per unit. 

[Daniel Frank]

Quote from @Bruce Lynn:

Are you still in this one?  Looks like it traded in 2022.  If you bought in 2018 and sold in 2022, you probably made out like a bandit.

Waco seems to have been pretty tough place to make money the past couple of years, so hopefully you were in that group.  If you are part of the 2022 purchase, how's that going?  Is it mostly student housing, since it is across/near campus?  Fixed or Floater on loan if you bought in 2022?  If you were 2022 group, that is tough leverage.  How's that working out?  Might be pretty tough deal.

I like Waco, but don't know enough about it to invest there.

I'm one of the investors in the 2022 purchase.  The GP just finished remodeling all the units, 98%+ occupied; mostly students on full year leases.  Has a 4.5% fixed 10-year note.  GP is considering refinancing in a couple of years to buy out some of the LP investors; I want to stay in the deal because of the great cash flow.

[Bruce Lynn]

Quote from @Daniel Frank:

Good news then on that one if it is cash flowing well.  Nice to have 10 year fixed loan.  That seems so rare these days.  Too many 3-1-1 which seemed good at the time. 

[Bruce Lynn]

Quote from @Gregory Schwartz:

The Waco market has stronger than anticipated numbers. There has been strong population growth, consistent appreciation, and a robust economy. It is seemingly still relatively affordable to buy an asset close to a major university at $100k per unit. 

I don't know Waco economics at all, but I'll bet there are 1000 units of some kind available for rent a town of 140-150,000 seems like a lot to me.  Too many.  Everyone I know that bought flips or rentals in Waco tells me the market is much tougher than they expected.  But granted that is a select few people and maybe not representative of the whole market.

[Gregory Schwartz]

Quote from @Bruce Lynn:

Quote from @Gregory Schwartz:

The Waco market has stronger than anticipated numbers. There has been strong population growth, consistent appreciation, and a robust economy. It is seemingly still relatively affordable to buy an asset close to a major university at $100k per unit. 

I don't know Waco economics at all, but I'll bet there are 1000 units of some kind available for rent a town of 140-150,000 seems like a lot to me.  Too many.  Everyone I know that bought flips or rentals in Waco tells me the market is much tougher than they expected.  But granted that is a select few people and maybe not representative of the whole market.

 I mean its not good enough for me to leave the comfort of my backyard here in BCS :)