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.