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(88 units) – Des Moines, WA
RSRC acquired an 88-unit property built in 1988 in the Seattle suburb of Des Moines, Washington. The property, under former TIC ownership, was underperforming it’s peers in the marketplace by approximately 10%. RSRC viewed this acquisition as an opportunity to improve management and make minor renovations to the property to achieve the current rent roll and additional modest rent growth over the course of the investment hold. Through RSRC’s network of small brokers, we identified this opportunity after a failed marketing attempt at a higher price and time running out on the owners before their financing needed to be paid off. At a purchase price of $81,818/unit, the acquisition was discounted to replacement costs, as well as below comparable sales in the market. In the first 12 months after the acquisition, RSRC/Calibrate grew rents by 9%. In June 2017, RSRC bought out their JV partner and recapitalized the project. The anticipated hold for the recapitalized project is five to seven years with a projected IRR of 17.8% and an annual cash yield of 8.5% – 10.5%.
|Project Capitalization / Loan (LTV):||$12,750,000 / $10,240,000 (80%)|
|Acquisition Date:||February – 2012 (Recapitalized 2017)|