Viking Atlanta Deal Feedback

[Aman S.]

Hello Everyone

I have invested with Viking before. I wanted to see if anyone analyzed their latest Atlanta deal. You can provide feedback here or DM me if you have reviewed this deal. 

Here is a link to webinar

https://vikingcapllc.com/listen-watch/avondale-hills-investm...

[Paul Azad]

Would have some concern, given their very rosy projections of NOI growth even in year one from 3 million to 3.4 million ,13%. however, Yardi data shows Atlanta rents are actually negative so far this year, by -.1%.

Also, some concern on the $5.3 million in transaction cost to acquire the property approximately 9% of the deal, obviously there won't be any money set aside for renovations given that the property is only a few months old, so this is all frictional cost to the investor. 

Also, would have some concern that they say replacement cost of this property is 50% higher than their buying it for. This property was just constructed a few months ago?  

Also, they're buying it just over a 5% ( noi 3 / 58) cap rate and planned to sell three years later at the same 5% cap rate, with the largest influx of new Class A multifamily to the Atlanta area ever in the next three years to compete against this Class A property, which should only continue to drive down rents or prevent NOI growth at the least.