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CLOSED on a 98-unit TODAY!
So, we had another thread going for a couple of weeks here. And this is not yet a success story, since a lot of work needs to be done to make it a success.
But, today, @Sam Grooms and I closed on this 98-unit in Phoenix.
This is a syndicated private placement acquisition. @Jillian Sidoti and her firm, whom I highly recommend, helped with the PPM-related docs.
The unit mix includes studio, 1x1, 2x1, and 2x2 lay-outs. The asset was constructed in 1984, and has by and large been un-touched on the interior of the units. However, the bones are very good, the unit sizes are attractive within the sub-market, and the location is experiencing very significant gentrification.
This was a mom-an-pop owned property. Rents are low even for as-is condition. Our Cap Rate on the way in is a bit under 5%. Our expected Cap Rate after the re-positioning in Y3 is 8.3%. Obviously we feel that there is a lot of upside on the rents.
We have a $1.4M renovation budget, which includes complete reno of the interiors, as well as close to $500,000 in the common areas.
I could talk for hours, but I won't. I have a feeling me talking for hours might happen on the blog :)
But, feel free to ask questions - I won't tell you everything, but I'll do my best to paint the bug picture.