$35MM Multifamily Acquisition | Miami, FL

Structured and arranged joint venture equity to capitalize the acquisition and repositioning of a 243-unit multifamily property in Miami, Florida.

Challenges

The value-add proposition was undermined by the seller’s limited success in increasing rental rates after upgrading half of the property’s units. Additionally, the sponsor’s track record consisted of one multifamily acquisition of a comparable size, and no previous history with institutional equity partners.

Solutions

Demonstrated that the seller’s renovations were too expensive and failed to target amenities tenants value the most, such as a swimming pool, covered parking, a gym and landscaping. Identified a capital source willing to underwrite the sponsor’s business plan in exchange for a senior-subordinate structure in the equity. Provided future liquidity options for the client by negotiating sell down rights for half its equity position.

Share on social media: