Recent acquisition of a 100 plus door multifamily building.

[Chris R.]

Investment Info:

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

Purchase price: $9,500,000
Cash invested: $2,800,000

This is a larger 104 unit, multifamily Syndication I'm a General Partner and Key Principal on.
We just closed on this recently. The cash invested of 2.8 was LP investors and GP investors combined to acquire the asset.
Asking price was just over $11,000,000

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

Cashflow and offset risk with the 100 plus doors, and value add component.

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

A partner brought it to me, there were 11 bids and 10 offers and we got the deal.

How did you finance this deal?

Bridge debt at 4.85%, closed right before things blew up with the virus. Literally within hours.

How did you add value to the deal?

We are finishing the renovation on 60 of the 104 doors.

What was the outcome?

Still in progress

Lessons learned? Challenges?

It took us a little longer to raise capital as the virus started to affect things but we got there with reserves. We also had to have a flood stage evaluation and recertification done but this saved us over 100K in valuation in the end, good move here.

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

Yes, we worked with Mark at Northmarq Commercial Lending