Acquisition Date: June 2023
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Status: Active
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Background
We purchased this 13 unit apartment building directly from the owner. The seller invested over $100,000 per unit in upgrades in order to make the units condo quality, but never converted the property and operated it as a rental. We were able to purchase this property at a significant discount to replacement value and the rents were well below market, so we had an opportunity to significantly increase value with minimal capital expense by optimizing management.
We purchased this 13 unit apartment building directly from the owner. The seller invested over $100,000 per unit in upgrades in order to make the units condo quality, but never converted the property and operated it as a rental. We were able to purchase this property at a significant discount to replacement value and the rents were well below market, so we had an opportunity to significantly increase value with minimal capital expense by optimizing management.
ESRE Approach
The property is in condo quality condition with 12 in demand two bed, two bath units. The prior owner had a low basis and wanted consistent cash flow, so rents had not been raised with the market for years. ESRE will bring rents to market as leases expire.
The property is in condo quality condition with 12 in demand two bed, two bath units. The prior owner had a low basis and wanted consistent cash flow, so rents had not been raised with the market for years. ESRE will bring rents to market as leases expire.
WHY ESRE
1Midwest Undervalued Markets
Targeting growing Midwest markets with favorable demographic trends and less competition but more favorable purchase multiples than other US Markets |
2Data Driven Strategy
Proprietary data science algorithm to forecast market rents and inform our target market and underwriting processes |
3Management & Operational Experience
Leverage proven experience managing and rehabbing multifamily properties to mitigate risks and scale operations |