Investment Info:
Large multi-family portfolio (65+ units) buy & hold investment in New Bedford, MA.
Purchase price: $5,420,000
This deal was an off-market 65+ unit portfolio in the heart of New Bedford, Massachusetts, minutes away from many amenities such as restaurants, cafes, stores, breweries, and the new MBTA Commuter Rail stops.
Our plan is to strategically sell off a portion of the portfolio and maximize cash flow with the remaining properties.
What made you interested in investing in this type of deal?
Location of properties, economic growth and investment in the community, value-add opportunities to deliver strong returns to GPs & LPs
How did you find this deal and how did you negotiate it?
Off-market through a direct-mail campaign. Built good rapport with seller & their property manager to demonstrate desire to ethically operate and maintain the portfolio.
How did you finance this deal?
75% from local bank, remainder of capital was raised from LPs & GPs using a 506(b) real estate syndication.
How did you add value to the deal?
I found the deal, negotiated and offered on the deal. I also did a material amount of the underwriting (Excel modeling), and assisted the team with due diligence. Together, we created a business plan that should deliver robust returns to all investors.
What was the outcome?
Closed on the deal, and currently working on implementing the business plan. We are preparing to list a few of the smaller buildings (4-6 units) for sale off-market within our network.
Lessons learned? Challenges?
Building a new team, working with new people, and compromise was a large part of the early roadbumps.
Additional skills gained around raising capital, and putting together a real estate syndication.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Eastern Bank provided competitive terms, (5.650% interest rate for 5-years fixed, no PPP after 3 years, I/O for 2 years, 30-year amortization)
