Ellensburg, Washington Multifamily Investment

[Ian McDonald]

Investment Info:

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

Purchase price: $1,800,000
Cash invested: $650,000

Contributors:
Tyler Moyer

Perfectly located 32 unit apartment complex right across the street from Central Washington University in Ellensburg, WA. This was an off market value add opportunity that we were very excited to undertake.

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

This value add deal was perfect for our first acquisition. The size and location were absolutely perfect for our company.

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

Direct mail marketing campaign. We have been a bit surprised how successful our mailers have been for us. The deal was negotiated over a three month period sitting down with the seller all along the way at a local coffee shop.

How did you finance this deal?

Owner finance at 16% down with 4.5% interest

How did you add value to the deal?

100% complete total unit renovation inside and out. Rents were extremely low and after renovations have been brought up to market rates increasing the NOI and value of the property.

What was the outcome?

Beautiful, fully stabilized property a stones throw away from local university. We plan to hold until we reach our target of COC and IRR.

Lessons learned? Challenges?

Never underestimate your abilities. Focus your efforts on networking and building a great team so you are absolutely prepared when a great deal comes across your desk.