After months of work we are very excited to announce that we have finally closed on Orchard Manor Townhomes a 32 unit complex in Louisville KY! This deal was completed as a syndication, we worked side by side with these fantastic operators: Marc and Gonzalo of Maple Capital Partners, along with Matt of Acre Equities and Miguel of Real Legacy Investment.
6 buildings consisting of 32 units
Each unit is a 2 bed, 1.5 bath of approximetly 900 sqft
Currently we are 100% occupied
Closed at a 7+ cap rate
Freddie Mac SBL program, 2 year of interst only
Average 8.8% cash on cash with a 6% preferred return
1.96 Equity multiple
Why We Think its a Good Deal
This asset is located only 15 minutes outside of downtown Louisville. It is in the path of progress of a submarket known as Hike's Point and less than a half mile from major national retailers. In place rents are well below market and there are additional fees standard for the area that are not being charged.
This is a value-add deal and we have the opportunity to complete various capital expense projects to the interiors and exteriors in order to help boost our NOI. We plan to start outside and work our way in, increasing curb appeal and renovating units along the way. There is plenty of meat on the bone here and as we follow our business plan over the next few years, we are very confident this will be a great asset for our investors and a more enjoyable place to live for our tenants.
Please feel free to reach out with any questions regarding this deal!