All Forum Posts by: Steven Gesis

Investment Info:

Large multi-family (5+ units) commercial investment in Cleveland.

Contributors:
Matthew Fritz

7 Story Multi-Family Value-Add - Tower Apartment

Complete Interior and Exterior Renovation - Lake View Property
New 25000 Sq. Ft. Pet Park
EV Car Charging Station
Modernized Hallways & Signage
Interior Remodel: Kitchen with Mosaic Backsplash, Stainless Steel Appliances
LVT Flooring Throughout
New Modernized Bathroom with Tile Surround and New Water Sense Fixtures
NEW LED Lighting, USB Outlet
Tech Package: Smartland Wi-Fi Internet*, Nest Thermostat, Alexa, Digital Door Locks

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

It was complex it was a tower, it is outdated, logistics were going to be complex considering the need to renovate all the suites while the residents remained in place

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

On-Market Deal - it followed our underwriting guidelines and showed potential if the right operator was at the helm.

How did you finance this deal?

Used a conventional commercial mortgage

How did you add value to the deal?

We modernized and added amenities to the tower. We brought the units into this century and were able to stand-out as market makers, with a middle priced product, not the cheapest and not Class A expensive. Tech package., new kitchens and bathrooms, new flooring, removed the hallway carpet and installed an epoxy floor system - lots of fun and exciting upgrades! Pet Park!!!

What was the outcome?

We have had great success in matriculating residents to the new suites and the engagement in the building has improved so has life and reputation.

Lessons learned? Challenges?

Towers come with own set of rules and regulations for fire, compliance, central mechanical, elevators, roofs, accessory rooms/office, and model units- this has been an amazing experience working on building new efficiencies, implementing CAPEX with large NOI drivers - VeryExciting to have walked the gauntlet on the tower apartment versus garden-style - Truly expanded knowledge and experience. Ready for the next level and larger challenge.

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

We always work with our internal team @Smartland - the team is a vertically integrated brokerage, management, maintenance, construction, marketing

Breakwater Tower Virtual Tour

Investment Info:

Large multi-family (5+ units) commercial investment investment in Cleveland.

Contributors:
Matthew Fritz

7 Story Multi-Family Value-Add - Tower Apartment

Complete Interior and Exterior Renovation - Lake View Property
New 25000 Sq. Ft. Pet Park
EV Car Charging Station
Modernized Hallways & Signage
Interior Remodel: Kitchen with Mosaic Backsplash, Stainless Steel Appliances
LVT Flooring Throughout
New Modernized Bathroom with Tile Surround and New Water Sense Fixtures
NEW LED Lighting, USB Outlet, New Outlets, New Switches
Tech Package: Smartland Wi-Fi Internet*, Nest Thermostat, Alexa, Digital Door Locks (No More Keys)
8th Floor Community Room with 270 Degree Lake View (New Windows, Activities, Comfortable Zen Seating, Full Service Kitchen & Bathroom)
Much More........

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

It was complex it was a tower, it is outdated, logistics were going to be complex considering the need to renovate all the suites while the residents remained in place

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

On-Market Deal - it followed our underwriting guidelines and showed potential if the right operator was at the helm.

How did you finance this deal?

Used a conventional commercial mortgage

How did you add value to the deal?

We modernized and added amenities to the tower. We brought the units into this century and were able to stand-out as market makers, with a middle priced product, not the cheapest and not Class A expensive. Tech package., new kitchens and bathrooms, new flooring, removed the hallway carpet and installed an epoxy floor system - lots of fun and exciting upgrades! Pet Park!!!

What was the outcome?

We have had great success in matriculating residents to the new suites and the engagement in the building has improved so has life and reputation.

Lessons learned? Challenges?

Towers come with own set of rules and regulations for fire, compliance, central mechanical, elevators, roofs, accessory rooms/office, and model units- this has been amazing experience working on building new efficiencies, implementing CAPEX with large NOI drivers - VeryExciting to have walked the gauntlet on the tower apartment versus garden-style - Truly expanded knowledge and experience. Ready for the next level and larger challenge.

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

We always work with our internal team @Smartland - the team is a vertically integrated brokerage, management, maintenance, construction, marketing

 Michael thank you-

Ondrej - thank you ! The interior atrium is unbelievable it's an all glass arcade it's truly amazing

Originally posted by @Robert Matelski:

Originally posted by @Steven Gesis:

Investment Info:

Large multi-family (5+ units) commercial investment investment in Cleveland.

Purchase price: $850,000
Cash invested: $600,000

Contributors:
Matthew Fritz

A success story for Multi-Family, repositioned the asset, modernized with new kitchens, bathrooms, flooring, paint and much more. Pet-friendly community right outside of the urban core.

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

Right outside of Urban Core - It was something no one else wanted to tackle

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

On-Market Deal

How did you finance this deal?

Conventional Bank Lending (Local Bank)

How did you add value to the deal?

We completely renovated the interior of the property inside and out

We added some modernized signage, we did something unique and painted a giant mural on the building highlighting its proximity to all major venues around town.

We added a dog park. We repaved the drive and parking lot. Cleaned up the exterior, painted the perimeter fence, installed EV, Installed NEW LED Lighting, New HD Security Cameras.

Modernized interior common areas and all the interiors of units with quartz, tile, more.

What was the outcome?

We have an unbelievable response for applications and it has been a huge success

Lessons learned? Challenges?

This building was old........ the lesson learned was budget, budget, and budget..... construction overruns are always a lesson learned, but here it was a challenge due to the age of the building, but we pulled it off.

 Nice job! That's at E. 55th and Payne, right? I've always thought that was a cool building.

 Robert yes that's correct - thank you !!

Originally posted by @Remington Lyman:

Originally posted by @Steven Gesis:

Investment Info:

Large multi-family (5+ units) commercial investment investment in Cleveland.

Purchase price: $850,000
Cash invested: $600,000

Contributors:
Matthew Fritz

A success story for Multi-Family, repositioned the asset, modernized with new kitchens, bathrooms, flooring, paint and much more. Pet-friendly community right outside of the urban core.

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

Right outside of Urban Core - It was something no one else wanted to tackle

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

On-Market Deal

How did you finance this deal?

Conventional Bank Lending (Local Bank)

How did you add value to the deal?

We completely renovated the interior of the property inside and out

We added some modernized signage, we did something unique and painted a giant mural on the building highlighting its proximity to all major venues around town.

We added a dog park. We repaved the drive and parking lot. Cleaned up the exterior, painted the perimeter fence, installed EV, Installed NEW LED Lighting, New HD Security Cameras.

Modernized interior common areas and all the interiors of units with quartz, tile, more.

What was the outcome?

We have an unbelievable response for applications and it has been a huge success

Lessons learned? Challenges?

This building was old........ the lesson learned was budget, budget, and budget..... construction overruns are always a lesson learned, but here it was a challenge due to the age of the building, but we pulled it off.

 Congrats!

 Thank you !!

Investment Info:

Large multi-family (5+ units) commercial investment investment in Cleveland.

Purchase price: $850,000
Cash invested: $600,000

Contributors:
Matthew Fritz

A success story for Multi-Family, repositioned the asset, modernized with new kitchens, bathrooms, flooring, paint and much more. Pet-friendly community right outside of the urban core.

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

Right outside of Urban Core - It was something no one else wanted to tackle

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

On-Market Deal

How did you finance this deal?

Conventional Bank Lending (Local Bank)

How did you add value to the deal?

We completely renovated the interior of the property inside and out

We added some modernized signage, we did something unique and painted a giant mural on the building highlighting its proximity to all major venues around town.

We added a dog park. We repaved the drive and parking lot. Cleaned up the exterior, painted the perimeter fence, installed EV, Installed NEW LED Lighting, New HD Security Cameras.

Modernized interior common areas and all the interiors of units with quartz, tile, more.

What was the outcome?

We have an unbelievable response for applications and it has been a huge success

Lessons learned? Challenges?

This building was old........ the lesson learned was budget, budget, and budget..... construction overruns are always a lesson learned, but here it was a challenge due to the age of the building, but we pulled it off.

 Todd, I like the office space idea, especially now more than ever, it can be a little spot to escape to just to be able to change the walls 

Agreed on the solar!

Got the bike stations they are a great visual. I like the "happy hour" idea it can help establish a better community. We have an intranet type of portal, but does not connect the residents amongst one another, not a bad idea. The delivery arrangement idea is phenomenal. 

Wow, Equestrian is a unique one, we don't have that much space, but that's a great idea. I love the gun range idea, perhaps even maybe an archery center?