Good bye to one property, hello to another

We’re sad to announce our sale of 4315 Jack St.  This property was purchased mid last year (2012).  It was a mess and we had a great time fixing it up.  Even though we had it less than a year, we were able to repaint the exterior, upgrade (heavily) 9 of the 10 units, clear out massive amounts of trash, demo the old shed and parking roof, and stabilize the income — raising it by 45% (to renters that rent increase sounds like a bad thing, but it’s the stabilized market rent that allows for upgrades and repairs to the property. The previous rent was a large factor in why the property was distressed and ultimately sold to us).

Our job there is now done and it’s time for a new owner to take it to the next level. The new owner is an experienced operator in the area and we’re sure she’ll do great.

So why are we sad, and why did we sell?  We’re first and foremost a company interested in growth and adding more units to our holdings.  However, the reality of financing in today’s market dictates much of what we do.  By selling the property on Jack, we are able to fund the growth of much larger properties (which may be sold at some point to fund even more).  A more complicated answer involves a moment towards additional leverage as there was a lot of equity in the property. A less complicated answer is that if financing were easy, we’d likely never sell anything.

At the same time, we’re happy to announce that we’ve now officially purchased the Wipprecht property.  We had been managing it for a few weeks in preparation of buying, but the ink is now dry and it’s a done deal.  We’re VERY excited to get this place cleaned up.  Stay tuned for some interesting before and after pictures!