Closed 32 Units in Louisville - My First Syndication

[Ryan Sarka]

Investment Info:

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

Purchase price: $2,475,000

32 units consisting of 2 bedroom, 1.5 bathrooms. A value add / momentum play in the desirable and quickly growing Hikes Point neighborhood only a half mile from major national retailers. With the addition of new, highly competent management we plan to execute a business plan of renovating units, incorporating multiple capex projects and bringing our units from some of the lowest rents in the area to the middle of the pack. We partnered with highly knowledgeable and seasoned operators with years of multifamily experience to complete this syndication.

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

I have become accustomed to investing in properties this size, ironically we own another 32 unit in NC, prior to that a 16 unit. Each of these have our far from my home state so when this deal came up I knew it was something we could handle. After researching the city more we thought this would be a great investment.

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

Our partners found this deal through their network. We found our partners networking at local REIA's and BP events :) We kept in touch over the last year or so continuously having each other review deals we felt could be a good investment, eventually it worked out.

How did you finance this deal?

Agency debt, Freddie Mac.

How did you add value to the deal?

Our value add plan and overall business strategy is fairly basic. We immediately transferred management to a professional and well respected company in the area. We plan to increase rents on average $150+ over the next 2-3 years, along with utility bill backs which is standard for the market. We plan to do this by turning units with high quality finishes along with increasing curb appeal and making it a more desirable place to live.