BLOG

Adventures in multifamily

It's been an exciting couple months as we closed on two larger multi-family properties with our partners at Wild Mountain Capital. First, in early Jul, we closed on a 23-unit apartment building called Melrose in Midtown Memphis, TN. We purchased the property for $1.6M with plans to add significant value through interior remodels of 21 of the 23 units which will allow us to raise rents from approx $635 per unit to the market rate of $825 per unit. Our teammates at Wild Mountain will have the lead on operating that property. We've just transitioned the tenants to their management company and will start remodeling units and filling vacancies.

This project represents a lot of firsts--our first joint venture, first syndication, and first large multi-family project and we're excited and humbled by the trust our investors have placed in us as we tackle this project.

Castle Arms

We followed the closing of Melrose with closing on a 10-unit apartment complex called Castle Arms in North Central San Antonio, TX--just five minutes from the Pearl Brewery and San Antonio Riverwalk. Castle Arms consists of two buildings--seven units in the main house and 3 units in the carriage house. We purchased the property for $955,000. Current rents are at about $870 per unit--our plan is to improve the property and eventually raise rents to about $1250 (average) per unit. We took ownership of the property in early August and 210 Holding Group will take the lead on construction on the property. Foundation, electrical, split-unit air conditioning and some minor interior work are the key updates needed for this already beautiful property.

Short Term Rental?

An exciting component of the Castle Arms project will be to capitalize on the amazing location of the property and the potential to dramatically increase the property value and revenues generated through utilizing some of the units for short term rentals (ie AirBnB). As indicated by the analysis and A+ market grade from AirDNA below, the 78212 zip code is among the best markets in the country for short term rentals. San Antonio is near the top cities in the country for growth in short term rental inventory yet it is still forecasted to have strong occupancy and revenue growth. Analysis indicates a 1 bedroom unit (we have 7 of those) should generate on average $1,800 a month in short term rental revenue. Operating short term rentals means increased expenses but regardless, this property screams short term rental and we plan to employ the strategy to help drive an increase in value. We look forward to updating you on progress.

Blog