The Flats at Nolensville
Nashville, Tennessee
We have once again partnered with Compass Capital on this 205-unit property 10 minutes south of downtown Nashville (506C Offering). GVA the seller has undergone severe growing pains, and this is a great opportunity to clean up management and renovate the remaining 188 classic units. Deal highlights:
►Total Uses: $34.5M
►Loan assumption - originated June 2023
►5-year loan with 5 years of I/O, 78% LTV, 4.88% interest rate!
►Buying at a 6.12 Cap
►Easy opportunity to remodel classic units with proven rents in nearby comps
►Favorable debt + value add play makes for incredible cash flow:
9% Avg CoC return (5.5% Y1 and 8% by Y2)
2.16x Equity Multiple
18% IRR
We are now accepting funds from accredited investors only until Feb 12th and have enough space to take ~ $4M more. Set up a call with us below to invest.
Embassy Apartments
Murray, Kentucky
In partnership with MTN Equity Group, we have this 32-unit apartment complex under contract within 10 minutes walking distance to Murray State University, one of Kentucky's top public universities with 10,000 students. This was once the golden property of town and we are excited to restore it to its former glory. We are conservatively projecting levered "property level" returns of:
2x Equity Multiple
8% Yield on Cost (untrended)
200 bps Development Spread
12% Stabilized CoC Return (Month 18)
60% IRR
See below for how we are achieving these returns with a higher underwritten exit cap than market and only 1.5% assumed rent growth Y1.
►Incredible basis of $60K / door
►Within walking distance to Murray State
►Student housing is under-supplied. Enrollment will increase with the pro growth university president Dr. Robert Jackson.
►Seller is an 87-year-old “Ma and Pa” owner who has never raised rents. The current monthly Avg rent is $348 a month.
►Rents are well below market and can be conservatively raised by 300%
►Property has a traffic count of 12k cars per day. New signage, management, and a full interior and exterior renovation of the property (~$15k/unit) will garner attention and publicity from the town.
►Our local GC has toured the asset with us and has the working capacity and experience to perform the renovations (most local GCs have 1-2 years of back-log).
►Bonnie’s property management (New PM) is local and managed the site 20 years ago. Will help us put the foot down with necessary evictions and pushing rents.
Equity is already fully subscribed for this deal.
Easton Apartments
Nashville, Tennessee
We have partnered with Compass Capital as a Co-GP on our biggest acquisition to date, a 206 unit apartment complex in in the best real estate market in the nation, Nashville Tennessee. We are fully subscribed and officially closed on January 16th. See some highlights of the deal below:
►6% Interest only Fannie Mae loan for 4 years with 7 year balloon.
►Total Uses originally $33M, but awarded a $1.6M price reduction taking this from a 5.7% going in cap rate to 6.0%.
►Great basis - bought at $140K a unit while similar recent sales comps traded nearly 30% higher.
►Asset is in Madison, a suburb of Nashville in the path of growth and only 12 minutes from down-town.
►180 classic units to renovate with about $10k per unit.
►Will resurface parking lot, add package hub, improve clubhouse and pool, add a dog park, add better exterior lighting, add gated entrances, and add security cameras.
►See projections below:
18% IRR
2x Equity Multiple
8% Avg CoC
~$40k Depreciation with $100K investment
Brinker & Healey Apartments
Ogden, Utah
We represented a client on this $3.7M, 18 unit multifamily portfolio sale including Healey and Brinker Apartments pictured below. We brought the seller three amazing offers to purchase the property. Ultimatley, they decided not to sell but liked us so much that they hired us to asset manage the two properties for a fee.
Idaho Smart Storage
Burley, Idaho
We developed this 132 unit self storage complex just before COVID. Despite the pandemic, it leased up quickly.
►We were awarded a rezone on the 2nd busiest street in the Magic Valley.
►400 South Road has a traffic count of over 9K vehicles daily and is under half a mile from the movie theater, the Walmart, and all the best restaurants and retail for miles around.
►We layed out the site so that the outside and end rows of units create a natural fence of protection, and the only way in our out is the entrance off of 400 South.
►We did a unit mix of 10x5s, 10x10s, 10x15s, 10x20s and two large specialty units.
►We have operated at over 100% economic occupancy due to our 30 day cancellation notice and typically filling our vacancies from our waiting lists same day.
►We love our signage which can be seen radiating in the dark of night.
►We installed a smart lock system so people can use their smartphones to open the units instead of traditional locks (which has been a big hit).
►We have already acquired more land to add to the "Idaho Smart Storage" brand!
If you'd like to invest with us on our next self-storage deal, please set up a call below.
