Keizer Oregon's first Mixed use.18 doors- 13 resi/5 commercial

[Chris Blackburn]

Investment Info:

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

Purchase price: $60,000
Cash invested: $340,000

www.KeizerMetro.com New build in Keizer Oregon. 13 apartments, 5 offices/salon/retail units. Ground-up constructions We were the developer, contractor, investor.

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

The land was priced too well to pass up. On a major road in Keizer ready to build.

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

Sat forever because it looked too complicated with entitlements/easements.

How did you finance this deal?

Cash and increasing the value of the project after entitlements increased the value of the bare land. Working with the bank to not fight seasoning the project (Good relationship with the bank) Being the developer and GC and the finance side really helps.

How did you add value to the deal?

Bringing our team in for land use, apartment design, entitlements and construction reduced the risk and offset the costs. Since this was our proforma and data used form existing projects our numbers were accurate. You always have to compensate for changes (increased cost) in the market. What worked in 2015,2016,2017 will crush you in 2020/2021. Local projects and local contacts really helped us meet our goals.

What was the outcome?

A project built on time and on budget

Lessons learned? Challenges?

Production style building may the best way to keep costs down. This project was unique and would be difficult to reuse the exact plans. Our future projects are going to be more streamlined and conforming. As this was an 18 plex- our future projects will take 1x 18 plex and use the same design and footprint. Repeat this over and over, the subs understand the exact costs, surprises, and improved timeline. We get a faster project, a better price, and incrementally improve the process.

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

For Commercial real estate in Salem and the surrounding area, AJ Nash Tradition Real Estate, www.traditionrep.com Troy Willis (commercial lender) Willamette Valley Bank or Steve W with Pioneer Bank. They are great for the $1M plus work.

[Jay Hinrichs]

Very nice looking project..  waaaaay back when I first came to Oregon.. I bought a 3 acre lot  in north Keizer and logged it.. then sold it cheap.. next thing I know there is a MHP on it.. you can see it from the freeway..  Oops. 

We built some similar SFR product in Hood River.. the Village at Rand road.. almost identical to your design there..

Great job !!!!

https://www.zillow.com/homedet...    these were designed in the middle 2000s project went broke my bank took it over and I built it out for them.. much like your design.. !!!