144 unit community in Memphis TN

[Justin Richards]

Investment Info:

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

Purchase price: $3,350,000
Cash invested: $300,000

Contributors:
Aaron Lenartz

This 144 unit was an incredibly good opportunity to pick up a great property with a ton of value-add potential. We are putting in a little over 2.2M and learned a lot by using a program they have in Memphis called the PILOT program. It is a tax abatement program for owners willing to put in more than half of the purchase price of the property into reno. Thit was a perfect fit and with our property management company,​ it is a great situation to be in!

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

The Memphis market was the exciting part of this deal. Getting into a new submarket and working with a great property management company.

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

We found this deal through a great broker with ARA.

How did you finance this deal?

We used agency debt and syndicated the equity.

How did you add value to the deal?

We sourced the deal, Provided the risk capital, and did the DD as well as saw it through closing. And now we are the Asset managers for the property.

Lessons learned? Challenges?

Too long to list...LOL

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We worked with Tommy B with ARA was our broker and our lender was Mark V who is with Walker & Dunlop I had a great experience with both of these fine gentlemen and will work with both of them again for sure.