Investment Info:
Large multi-family (5+ units) commercial investment investment.
Purchase price: $2,200,000
Cash invested: $850,000
Originally Bellaire Village Apartments we have rebranded to Avery Apartments. 48 units all were original dilapidated condition in a slum lord management style. With proper due-diligence and market insights we found a gem in the rough. The average rents going in were at $480 and now with fully renovated units, re-branding, exterior upgrades we are averaging $960. This Was purchased directly from the owner making it an awesome deal for the seller and for us!
What made you interested in investing in this type of deal?
This was a run down miss-managed apartment complex. We knew it was going to be a heavy lift but we bought it right and knew our efforts if successful would pay off.
How did you find this deal and how did you negotiate it?
Direct marketing
How did you finance this deal?
We took out a bridge loan 24 month term with 2 extensions. Equity was provided through a 3 party joint venture.
How did you add value to the deal?
We updated the exterior by painting the brick two-tone, new landscaping, roof and re-branding the complex with new signage. The units have been completely updated with new flooring, paint, light fixtures, designer hardware, granite tops, vanities, showers and appliances.
What was the outcome?
We transformed a run down drug infested community to a new community the residents are proud to live in.
Lessons learned? Challenges?
We were very tight on the rehab budget with raising material and labor prices. We would add more on the next one as a buffer.
