Massive Value Add - Renovating 20 Unit Apartment Building - NY

[Brian Green]

Investment Info:

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

Purchase price: $1,265,000

Physically distressed 20 unit apartment complex with 90% occupancy. Business plan is to vacate all units and perform massive renovations to all buildings(5) and apartments. Roofs,siding,windows, doors, flooring, appliances, paint, railings, patios, lighting, heating elements, water tanks, bathroom fixtures, kitchen cabinets, and counters. Everything from top to bottom minus the existing drywall.

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

Location plus opportunity to add value through renovations bringing rental income to market levels.

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

One of our mailers reached the property owner and negotiations were off an on for the better part of year. Finally the owner decided to list the property and agreed to present the listing to us prior to posting to the market. We offered list price and had the property under contract the next day.

How did you finance this deal?

Construction loan from a local credit union and owners personal capital.

How did you add value to the deal?

Investing almost $1.0 million in capital expenditures through renovations. Rents to be raised from $750 to $1245.

What was the outcome?

In progress.