Ashgrove Apartments, a 92-unit value-add multifamily property

[Charles Seaman]

Investment Info:

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

Purchase price: $4,876,000

This is a 92-unit multifamily property that my partners and I currently have under contract. It is a value add deal with a 2-5 year hold period.

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

I spent 14 years working for a commercial investor, so I generally tend to prefer larger multifamily and/or commercial deals.

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

I found the deal through a broker. It was an on-market deal, but it was able to be purchased at a below average cost for the market when comparing the per unit price to similar properties in the area.

How did you finance this deal?

31% of the purchase price will be financed by equity investors (my partners and I are currently in the process of raising money for this deal) and 69% of the purchase price will be financed by a CMBS loan.

How did you add value to the deal?

Value add will be added by pushing rents through operational efficiencies and also by doing light unit interior upgrades as units turn.

What was the outcome?

To be determined, but good things are expected.

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

Yes. I'd recommend the real estate broker and the mortgage broker that we dealt with.