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Aug 17
2010
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Investor Alert - 140U San Antonio Upside Apartments
Posted by: Dike Drummond MD CPC on Aug 17, 2010 10:48 Tagged in: Untagged
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As we roll into the third quarter of 2010 and the talk of "double dip" recession is getting more and more air play - we are seeing several multifamily markets around the country start to heat up.
Tops of our radar is San Antonio.
In select neighborhoods, listed apartment projects are getting 20+ offers and Cap Rates are falling while rents are rising.
We have a unique, value add "B" Class San Antonio 140u property under contract directly from the Seller - and are recruiting Investors as JV Equity Partners.
Principals Only Please - no Brokers or Daisy
Chains
Contact Me Directly for full details and
Introduction to the Project Sponsor
Dike Drummond
dikedrummond@gmail.com
360-262-4971 (office)
Here are the bullet points
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The Property:
- 140 Units "B" Class Apartments
- Purchase Price $5.279M or $37.7K/door
- Desirable San Antonio Location, listed properties
getting 20+ offers
- Unit Mix: 62, 1BR - 68, 2BR - 8, 3BR
- Total 116,368 sq ft - average unit size 831 sq ft
- Two swimming pools, clubhouse, business & fitness
center, laundry
Very desirable location
The Upside:
- Off Market Property under contract with no new
financing needed
- Loan assumption will take 90 Days
- Going in Cap Rate is 8.43% on current Actuals
- Only $350K in repairs and upgrades needed
- Current economic occupancy is 78%
- Project Sponsor currently owns apartment complex
across the street which is at 97% occupancy
- Sponsor has intimate knowledge about this property
has already conducted thorough due diligence.There
are no surprises.
Good upside opportunities: Renovation, occupancy,economic losses, expenses, economies of scale with other assets (property can share a manager with sister property and reduce payroll costs), sponsor can achieve lower insurance premium due to size of portfolio
The Investment:
- $760K purchases an 80% stake in the Project
- Project Sponsor holds a 20% stake
- All proceeds split pro rata
- Two year projected IRR in excess of 70%
- $200K minimum
- Accredited Investors Only Please
- 1031 OK with minimum size $380K
- Self Directed Funds OK
The Project Sponsor:
- Already owns and manages over 1300 units in San
Antonio
- Owns and manages the 232 unit property across the
street
- Owns a total of over 4000 apartment units in six
states
- Has completed due diligence on this property when
it was bundled in a separate purchase earlier this
year. Owner has come back with a lower price,
facilitating this sale.
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Contact Me Directly for full details and
Introduction to the Project Sponsor
Dike Drummond
dikedrummond@gmail.com
360-262-4971 (office)
