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Here is a perfect example of a larger apartment project that has the criteria that we look for when seeking out deals.  See if you can pick out some of the key reasons this looked like an attractive buy.  Don’t get hung up on the size – there are more of these at lower prices, they just don’t make the news. There are two primary plays of deals (I’ll explain more below.) I see these at least 10 times a week…

PointOne Holdings, a Real Estate Investment Group in the Southeast Acquires Multifamily Property

Real Estate Investment Group in the Southeast acquires Steeple Chase, a 306 unit Apartment community in the Northeast Atlanta City of Norcross. Atlanta, Georgia (PRWEB)

PointOne Holdings (“POH”), a Real Estate Investment Group in the Southeast, is pleased to announce a $13,275,000 closing on the purchase of the Steeple Chase Apartments, a 305-unit garden style apartment community located in the highly desirable Northeast Atlanta city of Norcross (Gwinnett County). This is PointOne Holdings’ second Atlanta-based multifamily acquisition over the past nine months.

Steeple Chase is a fundamentally sound asset that offers strong in-place cash flow in a solid infill location. PointOne Holdings will implement a cost-effective capital improvement plan focusing on upgrades to the unit interiors in order to enhance the Property’s value and increase occupancy to market levels.

The sponsors of POH obtained $9,955,000 (75% of the purchase price) in Freddie Mac financing through Walker & Dunlop. The whole transaction, including financing, successfully closed in 60 days. PointOne Holdings is actively pursuing other multi-family properties throughout the Southeastern U.S.

“We are pleased to add this quality community to our growing portfolio,” commented David Garfinkle, one of PointOne Holdings’ Managing Members. “Our investment strategy is to build a balanced portfolio of income producing and value add properties. We will continue to seek similar value-add properties in the Metro Atlanta market as part of our overall strategic growth initiative in the Southeastern U.S.”

Commenting on the latest acquisition, Ben Colonomos, PointOne Holdings’ other Managing Member, said: “We are optimistic about Atlanta and see strong macro signs that this market is poised to pick up over the next 5 to 10 years. New residential development in the Metro Area is at a low point, and we believe that demand will outpace supply thus substantially reducing vacancies and increasing rents.”

According to Managing Member Leo Peicher, “the economic crisis has created unprecedented opportunities to invest in real estate. Our group has positioned itself strategically by acquiring income producing assets in growth markets, for a fraction of replacement value, with strong cash flow performance, and a solid potential for appreciation. Our goal for 2013 is to dramatically increase the size and quality of our portfolio throughout the Southeastern US.”

PointOne Holdings is based in Plantation Florida with additional offices located in Atlanta Georgia. The Company was founded in 2010 by Managing Members Ben Colonomos, David Lewin, Leo Peicher. In 2012 POH did a strategic joint venture with Biscayne Atlantic to acquire and manage income producing and value add properties throughout the Southeastern US. The management team is comprised of highly skilled and experienced real estate operators and entrepreneurs. The group has a strong local presence and deep understanding of the Atlanta commercial real estate market, as evidenced by their acquisition and management of more than 2 million square feet of income producing residential properties since 2010. For more information go to http://www.pointoneholdings.com

First of all there are two primary plays when buying “in place” apartment deals.  There is the “all cash distressed play” with no financing, and there is the “stabilized asset” that can be purchased well below replacement cost that supports immediate bank financing.  This project was the latter, and while this investor is buying assets that are a grade or two above what we usually look for, they are buying at a deep discount compared to other A and B type communities.  This purchase represents at least a 40% discount to replacement.

The second key point is the comment about “strong, in place cash flow” in a solid infill location.  This investor knows that their equity capital is in a relatively safe position as the property is already functioning and making a profit.  With their upgrades and re-energized management in an up and coming market (which Atlanta is now becoming) the investor has leveraged the upside on this project with a proven asset.

While it is unclear what the exact discount is, and what the actual returns are, we are seeing that several investors who bought badly 5 years ago are eager to get out of their assets now that they can break even.  When those beat up investors get out out it gives new investors some great opportunities. 

This is a large example but there are 10 times this many at the $1 million to $5 million level.  In many cases an investor can get into with as little as 30% of the purchase price and it doesn’t need to be their own money.  What you need is a team and some know how.  What kind of team and what know how?  That is exactly what I will be outlining Tonight in my Live Special Event Webinar …. make sure you join us! Happy Investing, Coach Michal

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Michal will be sharing his insights tonight on WHY he is so very bullish about apartments and is actively investing throughout the US right now.  Tonight he will show you how to started in the lucrative foreclosure aparment business, using outside private investors to fund all your deals, and build in hundreds of thousands of dollars of profit on just one deal.

 “Earn Huge Profits Investing in Apartment Foreclosures in 2013 and Beyond” is Live Tonight at 6pm Pacific, 9pm Eastern. This is is a free special event, with limited space, on a highly popular subject. Please register now and join in early to secure your seat. More Here. Talk to you Tonight!