Anatomy of a homerun

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Thought I’d share numbers for a deal we just stabilized.

Not going to share the address, because I don’t want to tip anyone off re neighborhoods, etc.

Anyway, here goes:

  • Acquired in Spring 2015
  • Stabilized approx. 13 months later
  • All in for ~$2.37MM
  • Stabilized rent roll of $262k
  • Implied GRM of 9x (!)
  • Forecast NOI of $190k
  • Implied unlevered yield of 8% (!)

We’re about to begin the refinancing process and I expect we’ll be able to pull the vast majority of the capital back out without saddling the property with more debt than it can handle, even in a downturn.

When we did this deal, I knew it was going to be good. But the combination of Jon’s design, some good leasing, and luck with the rental market turned a good deal into a bona fide home-run.

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