The Oaks Story

We acquired the oaks in 2018 as a 24 unit apartment complex. The complex was overall well maintained but was significantly under-rented and was missing opportunities for increased revenue through charging late fees, pet fees, increasing rents, and monetizing an unused laundry facility and onsite office. Additionally, the complex had all original fixtures. Post acquisition we began updating units and increasing rents, as well as immediately replaced all plumbing fixtures with low flow fixtures which reduced water/sewer expense by over 30%. Next, we were able to convert the laundry room & office to an additional 1 bedroom apartment making the apartment complex a 25 unit community. Once these value added improvements were complete we were ready to sell the complex as cap rates compressed to historic lows in the area.

Purchase

• Purchased 2018

• $885,000 purchase price with a 15% owner carryback at 0% interest with no payments for 4 years amortized over 10 years

• 12% preferred return to investors with 25% of remaining cash-flows distributed to investors

Exit

• Sold 2020

• $1,250,000 selling price

• Investors exit IRR’s north of 20%