72 unit syndication in Salem, VA

[Duc Ong]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $3,795,000

Contributors:
Vince Gethings

✅ Caroline Forest is a 72 unit multifamily asset located in an excellent hill top location in Salem, VA. The deal came from a direct to seller relationship, which led to our strategic partnership with another group.
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✅ The seller is a 99 year old resident of an assisted living facility, which is a testament to the skill and persistence of our partners to be able to get this deal across the finish line.
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✅ We are partnering with Greenbrier Property Management to implement our business plan, which includes extensive lease management and premium unit turns along with driving NOI growth through decreasing expenses and increasing revenue through additional income streams such as pet fees and RUBS.
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✅ This deal had its fair share of 2020, such as agency financing falling through due to lack of time and their loan backlog. This led to us to going with bridge debt, which will be refinanced into agency upon stabilization.

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

This fits our buying criteria of 50+ unit value add multifamily

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

This was through our partners who negotiated the deal directly with the seller.

How did you finance this deal?

Bridge debt

How did you add value to the deal?

Rebranding, unit upgrades, pet fees, RUBS, raising rents to market

Lessons learned? Challenges?

We had an opportunity to secure agency debt, but time ran out, forcing us to get bridge debt. We will refinance into agency later, once our NOI improves.