Closing Announcement - White Pines Apartments
- Brian Briscoe
- Jul 30, 2024
- 2 min read
We just closed on another 56 units in Salt Lake City, Utah!!
We now operate White Pines Apartments on behalf of our 50+ investors that have joined us on this deal.
But WAIT!! There's more!! (Remind you of a late-night infomercial?)
This is a portfolio deal where we'll be adding a second acquisition under a single investment opportunity: a 24-unit property that is currently called Blair Street Apartments that's only a mile away.
This is hands-down the best apartment investment opportunity I've seen this year.
Two apartment communities...
80 units total...
Light value-add component...
In one of the fastest growing metros...
And THE hottest economy in the nation...
(AKA Salt Lake City, Utah if you need the hint)
Each property made sense as an individual investment and the appraisals we received proves that point. We're literally walking in with $700k in equity.
But there was added synergy when we looked at combining the two together - primarily due to their close proximity to each other. Now, instead of managing a 24-unit and a 56-unit separately, we can manage 80 units together as one.
Why do I like this Deal so Much?
Location, Location, Location
First of all, Salt Lake City:
High population growth + blazing economy + housing shortage = rents and values will climb significantly over the next few years
Location within the city:
In the path of progress with several new developments within blocks of the properties.
Convenient acces to both I-15 and I-80.
Less than 15 minutes from major employment centers, education, entertainment, and health care.
Proximity to each other:
A few mere blocks from each other means we gain synergies in management...
The Properties
White Pines Apartments - 56 units with a light value add...
We'll add amenities, curb appeal, and revenue boosting self-storage...
Appraised value is $400k higher than purchase price...
Averaging 95% occupancy...
Blair Street Apartments - 24 units with light value-add...
We'll improve management, add curb appeal, and revenue-boosting laundry facilities...
"Mom and Pop" owner with average lease >$200 below market...
Appraised value is $300k higher than purchase price (even with low leases)...
Averaging 95% occupancy...
Market Forces
Due to the rate-hike cycle in 2022-23, apartment prices have dropped 20-30% and we're buying at a significant discount compared to early 2022. Now, that by itself is not a great reason to buy, but looking forward, we can still expect values to go up.
Projected rate cuts should push prices up nationwide (though we don't know when or how fast)...
At the time of writing, the first rate cut is "likely" to occur in September 2024 and cuts will continue into 2025.
Normal inflation will continue to push prices up.
New housing units projected from 2025-2028 will be lower than pre-COVID averages, which should make the housing crisis worse. That will also push prices and rents up...
Interested in Investing?
Since there's a second property that we still need to close, there's still room for more investors...
(Open to accredited investors only - this is a 506(c) investment opportunity)
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