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Apartments On 11th

Apartments on 11th is located Pompano Beach, nestled between Boca Raton to the North and Fort Lauderdale to the South.  When Blue Ribbon Asset Group acquired the property, it was a neglected Class C Property.  Our business plan was to replace the roof, repair the damaged sewer lines, upgrade the balcony, upgrade the elevator, repaint the exterior of the building and remodel 20 of the 33 apartments.  

We were able to obtain 70% financing at 4.02% by using a 2 year bridge loan, where the bank agreed to finance all of the capital improvements.  There were also (2) two, six month extensions if needed to finish the improvements.  After stabilization of the asset, the bank would roll the loan over into a conventional multifamily loan, and would cash out the equity on the property based off a 70% loan to value.  We estimate a return of between 30 and 35% of the invested capital when this occurs. 

      Year Built:  1970

      Units:  33

      Rents at Acquisition:  $1,225 average per unit

      Anticipated Rent after Capital Improvements:    $1,545  (21% increase)

      Occupancy at Acquisition:  100%

      Projected Cash on Cash Return:  6.9%

      Projected 7 year Internal Rate of Return (IRR):  14.46%

      Projected 7 Year Equity Multiple on Original Investment:  2.13

      Total Return on Original Investment (Cash Flow + Profit from Sale):  113.3%

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