18-unit reposition

18-unit reposition

The 18-unit reposition was an ambitious project composed of extensively renovating three 6-unit buildings in North Fargo. These buildings had fairly decent physical occupancy with less than stellar economic occupancy and were in pretty rough shape when I took possession. The buildings are composed of two 2BR units and four studios per building. The studios had never had a cooking surface and so the team had some significant electrical work to add ranges and above-the-range microwaves to the new kitchen configurations.
 
I kept only three residents from the previous ownership and all the units needed significant renovation representing my biggest project to date. The ladies at Personal Touch Management were able to lease the units quickly upon completion and after surviving my first encounter with commercial appraisal, (which will definitely be a blog post) I were able to pull about 85% of initial capital out of the project including down payments and renovation on refinance. This was a great proof of concept about multifamily reposition of C-class assets in the North Fargo Market. If you’d like to hear more about this project or others like it, please reach out to me at steve@fourwallsrei.com.