Villas at the Curve & Eagle Landing

Montgomery, AL 36116

$17,250,000

Investment Strategy

Cure Operational Deficiencies

The seller brought management of 4,400 nationwide units in-house simultaneously and has struggled with operations. These properties, among others, were bought at high occupancies and subsequently vacated to renovate interiors on large scale. The seller’s foreign equity is now forcing a sale due to non-performance, thereby allowing us to acquire his properties at an attractive basis.

Combine the 2 Properties

Villas at the Curve and Eagle Landing were built from 1984-1986. The two properties are contiguous and are nearly indistinguishable in style and layout. The properties will be combined under a new name and all leasing activities will be conducted from the current Eagle Landing leasing office towards the very front of the property.

Rehab 129 Eagle Landing Units

Eagle Landing (129 units) is nearly vacant due to a failed attempt by the seller to renovate all units at once. These units will be renovated and substantially leased within 6 months of takeover.

Update Classic Units

Villas at the Curve has 180 classic units that will achieve rent premiums from $120-185 after a cosmetic renovation of $7,000 per unit.

Property Details

Property Names

Villas at the Curve
Eagle Landing

Location

Montgomery, AL 36116

Year of Construction

1984 & 1986

Total Units

393

Current Occupancy

Villas: 92%, Eagle: 3%

Unit Mix

Villas: 1/1 (81), 2/2 (127), 3/2 (56)
Eagle: 2/2 (129)

Community Style

Garden

Investment Attributes

Significant Upside & Multiple Exits

Due to extreme operational inefficiencies, this property is being bought at a very attractive basis of $43,893/unit. With a conservative exit cap rate of 7.0% our exit basis will be ~$73,000/unit.

  • Assuming no refinance and reversion at EOY3, IRR projects at 22.6%.
  • Assuming are finance at EOY3 and reversion at EOY5 ,IRR projects at 20.2%.

Strong Submarket

The properties are located in the Southeast Montgomery submarket. This C/C+ submarket is well established and provides convenient access to retail and office corridors. Median household income in Montgomery Country is $47,990.

Experienced Asset Management Team

Think Multifamily and their property management partner, Multi-South Management Services, currently own and operate 176 units in Montgomery, AL with another 200 units currently under contract. In addition, the Sponsors own and operate over 7,000 B & C class multifamily units throughout the Southeast.

Property Investment Performance

Purchase Price

$17,250,000

Price Per Unit

$43,893

Avg. Annual Cash Yield

13.1%

Projected IRR

19.5%

Equity Multiple

2.10x

Hold Period

5 Years

Equity Required

$6,100,000

Got Any Questions?

Connect With Jeff Mckee

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