Jacksonville Investor Favorite

[Ken Gee]

Investment Info:

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

Purchase price: $7,600,000
Cash invested: $3,700,000
Sale price: $13,130,000

This property was built in 1990 and consists of 104 units in thirteen walk up, garden style two story buildings each with its own patio or balcony.

The plan with this property was to make some significant common area improvements (roofs, exterior paint, resurface the pool, add an outdoor kitchen, outdoor TV, redecorate the clubhouse, completely renovate the fitness center, and upgrade the landscaping. All in, the renovation budget topped $850K. There is a generous mix of one and two bedroom units, many overlooking a beautiful pond. Each unit is equipped with a washer & dryer and hardwood floors. We have been able to raise rents by approx. $150 per unit per month since we acquired the property, which is better than our initial projections.

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

Great neighborhood, in need of a lot of TLC. Tons of character.

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

Through our deep broker network.

How did you finance this deal?

We assumed the CMBS loan that was in place.

How did you add value to the deal?

We renovated the exterior of the property. We spent approx. $850,000 on new roofs, painted all the buildings, new landscaping and lighting throughout and upgraded the units. completely renovated the amenity package including the pool, pavers, outdoor kitchen, outdoor TV, fitness center. We also implemented our "best practices" management processes.

Lessons learned? Challenges?

Too many to count. Always learn a lot when you do a project of this scope and size. Lots of renovation challenges and of course, there was the pandemic!

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

Mike Regan, Cliff Taylor and Joe Ayers of CBRE. Amazing guys!