Middle-Market Multifamily Forum (Northeast) February 7-8, 2019 | New York, NY
Benjamin Inman Managing Member Equis Residential
Through EQUIS Residential I acquire assets with 200+ units per asset to 3,000 unit portfolios throughout the Southeast. As a Principal in each acquisition, I partner with and assist select Family Office clients with Investment Opportunities, Advisory, Research, Forecasting, Asset and Portfolio Acquisitions and Management for Multi-Family Investment Properties throughout the Southeast United States.
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With interest rates starting and predicted to continue climbing are you changing your investment strategy? Our strategy has shifted slightly. For our larger asset acquisitions, we are now looking in outlier markets that fall immediately outside our primary target areas in order to find better yield, while our focus within current target markets has shifted to assembling a portfolio of smaller assets. Tell us about your experiences working with institutional $$. There is not a shortage of capital in the market so our experience working with institutional capital has been positive. We recently closed on a 457 unit portfolio in Knoxville, TN for $35.6M that we acquired with an institutional partner who brought in just north of $8M to fill out the LP equity slug. What was the last technology update that you performed to any of your apartments? We have started the process of rolling out rent payments only being accepted online on a portion of our portfolio. As we monitor this adoption we will consider rolling it out portfolio wide. In addition we are considering some additional technology roll-outs like key-less entries, etc. but we that will be decided upon during further research. Tell us about your last value-added deal Value add deals come in many shapes and forms. A value-add strategy we are currently going through in Knoxville is allowing us to achieve $150-$200 in additional rent in most cases. These renovations consist of a blend of cabinet paint, 3” horizontal brushed nickel door pulls, adding backsplash, light gray wall paint, and new wood- look vinyl flooring which itself fluctuates between lvt vinyl plank and sheet vinyl depending on 1st, 2nd, or 3rd floor units. Cash flow vs. value-added vs. construction? Going-in Cash flow is the best on smaller assets with many achieving 10-12% COC day one, while Going-in Cash Flow is trending 7-8% COC for larger assets which are enhanced over time with the implantation of a sound value-add business plan in order to achieve $75-$150 in premiums in order to reach closer to the 12% COC mark.
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