Student housing project 117 unit rehab

[Pat Motley]

Investment Info:

Large multi-family (5+ units) wholesale investment in Commerce.

117 Unit apartment complex for Student housing for A&M University. In need of full gut rehab along with rebuild of some previous bldg that have been torn down. Looking for a buyer who isn't worried about a large budget or asbestos. Large potential for income or sell to end buyer after rehab. Tax value 3yrs ago 1.1 mil.. now since City shut it down it's at 300K. Currently working with the City for possible tax breaks to owner and have been given all the documents on file with the City. Spoken with a GC and he's ready to come on board and knows the in and outs of how this College town operates. I approached the City for the tax breaks as there is potential for other projects in the area

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

Seeing the housing that these students are renting. That better places are needed on a daily basis. When talking with the City, College and local business owners I wanted to step in and help provide a solution for this need.

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

Driving by it on a weekly basis going to visit family and started to notice nothing with being done about the Complex and it's boarded up windows etc. Going in for a short sale and I can't understand how a Bank would loan 200K on a property that has been officially yet not destroyed and able to rehab by the City. City states it's not a tear down at this time, however will do so if it's not rehabbed.

How did you add value to the deal?

Value will be added after full rehab of the units, office and common spaces plus parking

What was the outcome?

Yet to be seen

Lessons learned? Challenges?

Challenge will be the owners an Bank.

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

Not at this time.