We acquired a 96 unit apartment building in Anderson, Indiana. This property was very difficult to manage due to its age. A gas pipe broke overnight and tenants were forced to vacate, leaving the property 100% unoccupied. The city made many demands for reconstruction that were out of budget and would not have pencilled. After negotiating a $1M reduction to the loan amount, we were able to sell the building. Investors received 65% of their capital. Lesson: Older properties need a large amount of reserves on hand for repairs and maintenance.
Arbor Village Apartments, Anderson Indiana
Status: Completed Projects