MONTERREY VISTA APARTMENTS
WE SELECTED DAN, RORY, STEFFEN AND JP AS KEY PRINCIPALS ON SEVERAL DEALS.
AFTER THEY LEARNED THE BUSINESS AND EXECUTED ON TASKS, THEY WERE READY TO DO THEIR OWN DEAL.
WE CONNECTED THEM WITH ONE ANOTHER TO PARTNER UP AND THEN GAVE THEM A DEAL!
After JP, Dan, Steffen and Rory filled out an application, we had a series of calls with them. We liked their story, goals and vision. JP was an investor on Rio Sereno Apartments, Dan on La Sonrisa Apartments and Steffen and Rory on Sycamore Gardens Apartments.
JP, Rory, Steffen and Dan Partnered Up
Our director of acquisitions, Lucas Fertitta, constantly gets deals sent to him given his vast experience and connections in Houston's multifamily space. One such deal was Monterrey Vista Apartments. We knew the KPs wanted to do a deal, so we introduced Dan, Steffen, Rory and JP to each other. There was instant chemistry among these guys. After they realized they were on the same page, they created their LLC and sent an LOI to buy Monterrey Vista Apartments.
This is a 28-unit Class C property that is always 90%+ occupied given the location and population growth in Houston. The property was already in good shape and perfect for first time buyers to come in, do some more interior and exterior renovations and create value for their tenants and investors.
The business plan is to reposition the property to a Class C+ by performing interior and exterior renovations, putting in a better tenant profile and increasing rents. We introduced them to renovation crews and a highly experienced property management company that specializes in under-100 unit properties.
Debt: We introduced them to our team at CBRE who provided them with a great Freddie Mac term sheet. Since they are first time buyers, we signed on as a sponsor given our faith in their abilities. The first 3 years will be interest only payments.
Equity: The KPs will be raising equity from the investor network that we have given them access to.
We will introduce our Key Partners to each other case by case as it makes sense and pass along deals to them to do as their own. We get a ton of deals sent to us.