Finishing up a really nice little deal

Regular readers know we’re not sellers; once we complete a renovation and lease the property back up, we refinance, return capital to our investors, then hold. The downside of this strategy is that it can take some time before Adaptive gets to participate in the cashflow generated from the property. Even when we are able … Continue reading “Finishing up a really nice little deal”

The math behind what we do

At this point in the cycle, when we consider a new deal, we spend a lot of time thinking about leverage. Mainly, we’re looking at how our pro forma unlevered yield (eg the cap rate we’re trying to hit post renovation) compares to the projected interest rate on the refinance we’ll do at that point. … Continue reading “The math behind what we do”

Another successful Adaptive deal

We just closed on the refinancing of an 11 unit apartment building. We bought the building two years ago for $2.65MM, then spent another $900k renovating it, bringing the total investment to ~$3.55MM. Our net loan proceeds on the refi are $3.54MM and we’ve accumulated ~$250k in cash from operations since lease-up. So, today we’re … Continue reading “Another successful Adaptive deal”

Thinking about the path not taken

Recently, I’ve been doing a lot of thinking about where we are in the cycle, debt, risk and asset allocation. You see, many of my contemporaries have been doing fairly high-leverage development deals and doing very well with them. We at Adaptive have shied away from those sorts of deals, for two, related reasons: You … Continue reading “Thinking about the path not taken”

Update on 830-832 N Beaudry

Today, we’re putting the finishing touches on 830-832 Beaudry, a 7 unit building we renovated through Adaptive Realty Fund 3. This project ran into some hurdles and was delayed approximately three months past its scheduled completion date. Some of the delay was unavoidable, but most of it was the contractor failing to supply sufficient labor … Continue reading “Update on 830-832 N Beaudry”