Pioneer Crossing Apartments
MBP Capital, Inc. represented a 1031 exchange buyer in the off-market purchase of Pioneer Crossing in April 2012. Purchased from a long-term owner, the exterior of the property was in good condition but the interiors were in need of an upgrade. A $400,000 ($2,632 per unit) renovation program commenced at takeover targeting the unit interiors.
Catalyst Multifamily Management was able to keep occupancy stable during the renovation and the owner was able to achieve a 10% cash-on-cash return during the renovation while only having 65% leverage. As operations improved the owner was able to refinance into a Fannie Mae loan which returned all of the initial equity while maintaining the same monthly draws.