This is one of the deals I talk to investors about the most, because this was our toughest investment.
Full story below 👇
While this did end with a happy ending (we returned all investor capital and a small profit), a lot of things went wrong, and we had to work through them for years just to keep the property afloat.
We purchased the property 4 years ago today, but the day before closing, the outgoing property manager put in a very problematic tenant, which was exacerbated by the fact that the property was only 24 units with no onsight payroll.
By January, they had stopped paying rent, so we moved to evict, and our court date was scheduled for...March 15th (AKA the date that the courts in Mecklenburg county closed due to COVID).
Things only got worse from here.
In the ensuing months, crime and non-payment became prominent on the property. Even working with the police every day, we were not able to remove disruptive tenants until November 2020.
With all of this going on, many of our paying tenants moved out, because they didn't want to live at such a rough property. Economic occupancy dropped below 50%.
Due to the drop in revenue, we couldn't cover debt service, so Evan and I were the first people to put money into the property to keep things running.
In just over two years, we ended up having four property managers. We fired the first, the second and third chose to leave, and the fourth managed it through our eventual sale.
You learn a lot through experience, and we learned a lot through this property. We've taken these lessons to heart on all future acquisitions.
The reason we talk about this investment frequently is because we're not trying to hide the rough spots from our investors.
So if you'd like to learn more about this project or any upcoming opportunities, schedule a call today. We're always happy to talk.
Four years ago today, Matheson Capital acquired Greenwood Village Townhomes in Charlotte, NC.
We purchased this 24-unit, newly renovated property for $3,300,000, and, despite several COVID related set backs, sold it for $4,000,000 in March of 2022.
This was a big step for us. At the time, Greenwood Village was our largest acquisition and our first acquisition in Charlotte, one of our favorite markets.
If you would like to gain access to our exclusive investment opportunities, join our mailing list, which is linked to in the comments.
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Executive Leader | Real Estate Acquisitions | Real Estate Development | Business Development | Franchise Sales Executive | Franchise Development | Commercial Real Estate | Senior Operations Leader | Multi-Unit Management
5moCongratulations. What a nice addition to the portfolio.