Class-A, Value- Added, Multi-Family Portfolio Acquisition
Flagstaff & Prescott, Arizona
|Funding||Debt Assumption: $44,400,000 (61% LTC)
JV Equity: $25,700,000 (90% of Total Equity)
Co-Investment Equity: $2,900,000 (10% of Total Equity)
Total Capital: $73,000,000
|Portfolio Metrics||Properties: 3 Class-A multi-family properties located in Flagstaff and Prescott, AZ.
Years Built: 1997, 1999, 2004
Total Units: 570
Total Cost: $73.0MM ($128k/Unit)
Cap Rate: 7% Market Cap Rate (Current Market Rents), 7.8% Pro-Forma Cap Rate (Year-4)
LTC: 61% (existing debt to be assumed)
|Value||• Acquire 3 Class-A multi-family properties in superior, sub-markets outside of PHX metro with in-place rents approximately 10% below market.
• High-quality, Class-A properties with zero deferred maintenance.
• Off-market, non-listed acquisition.
• Under-managed property with out-of-state owner disconnected with the operations of the property.
• Flagstaff and Prescott sub-markets have demonstrated high barriers to entry, stable historical occupancy and weathered downturn well.
• Flagstaff and Prescott sub-markets currently undergoing positive transition with job growth, population growth, rent growth and high market occupancy.
|Exit Strategy||Sale or refinance at the end of 3 to 7 year investment period.|