Class B Apartments- 263 Units

[Matt Paul]

Investment Info:

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

Purchase price: $12,600,000
Cash invested: $486,000

263 units. Class B property located in Grandview Ohio. Consists of 7 buildings: mix of studios, 2/1, and 2/2. 95% occupancy with strong CF. Upon purchase in 2015, rehabbed units when available, increased rents and refinanced in 2018, returning original investment capital to investors. Well managed, strong rent pool and positioned as buy and hold.

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

We were looking to partner with others to get into apartments. This deal was larger than we would have chosen, but the right partnership presented itself.

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

Deal was found through partners, property was on the market and negotiated with other potential investors.

How did you finance this deal?

Traditional financing.

How did you add value to the deal?

Rehabbed common spaces and units as we turned them. Improved parking lots and outdoor landscaping.

What was the outcome?

We were able to refinance the property in 2018 with considerably higher NOI and return original capital investment to investors.

Lessons learned? Challenges?

Getting the right property management is critical.
Location, location, location.
Don't be greedy, increase rents but make sure you provide value in doing so.
Keep re-investing in the properties with positive CF.