Newly constructed 70 unit apartment complex

[Mike Henkel]

Investment Info:

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

70 unit newly constructed apartment complex

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

Wanted newest nicest apartments in area to attract the better clientele.

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

Cold called (like most deals I’ve done) lane owner

How did you finance this deal?

Profit from Sale of 60 unit older apartments/condos. Bank loan for rest.

How did you add value to the deal?

Built property on vacant land.

What was the outcome?

Working out well so far! Have low LTV from principal of previous sale so that helps.

Lessons learned? Challenges?

Building is tough, price increases, deadlines, funds, making them cash flow. Low risk, low maintenance, but lower cash flow vs a value add.

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

Myself! Commercial Multifamily real estate broker