MF Value-add deal in Atlanta MSA

[Dan Hennessy]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Stone Mountain.

Purchase price: $40,350,000
Cash invested: $100,000

I'm an LP on this deal, Ashland Lakeview Apartment Homes plus Mountain Lake Apartment Homes. 539 Total Units, Atlanta Georgia MSA, purchase price $40,350,000. The strategy that attracted me to the deal was to add value with professional management; the GP brings an in-house property management group with scale in the area.
Other strategies:
• Enhance curb appeal and desirability by implementing common area improvements and upgrading amenities
• Add substantial value to the property by upgrading unit interiors and increasing rents to market rate
• Improve the resident profile and stabilize occupancy and collections
• Increase income, hold for cash flow for several years and sell as renovated, stabilized asset when the best exit timing is achieved

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

By joining a deal as an LP, I was able to learn the end-to-end deal strategy behind a multifamily value-add deal. Through their investor webinar to 1 on 1 interactions, I was able to discuss the strategy, financials, risks, and exit plan for the deal. At the same time, the targetted returns were attractive with an 8% preferred return and attractive target IRR

How did you finance this deal?

Cash