Recent acquisition of a 112 unit value-add multifamily building.

[Chris R.]

Investment Info:

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

Purchase price: $3,875,000
Cash invested: $2,130,000
Sale price: $5,200,000

The Tristan Townhomes consist of 112 two-bedroom, one-bathroom, two-story, townhome-style units. There are 28 buildings, each with 4 units, and one duplex building designed as an onsite property management and maintenance building at the entrance of the property. Tristan was built in 1983 and is a one-owner property. The current owner is in her 80’s and is ready to retire after this property for over 30 years. There has not been a rent raise on most of the units in over 10 years with a current average rent of $550 per month. The comps in a 5-mile area average over $950 per month. There is some deferred maintenance and the units can use an upgrade, but overall they are in decent shape. The building currently holds a 99.1% occupancy. The reason for the 0.9% vacancy appears to be a unit being cleaned and new carpet being added. There is currently a waiting list to rent at Tristan.