Source: Trade Winds Real Estate / #Apartments #Multifamily
BIRMINGHAM, AL - Raising $5.1 million dollars in financing through a combination of debt and private equity, Trade Winds Real Estate has closed on TimberChase, a 94-unit residential property. The property is already at 100% occupancy, making it a stabilized and potentially quite profitable asset. Trade Winds predicts that investors will see an 8% dividend from TimberChase starting in the first year.
"At $5 million, the TimberChase property represents our largest closure to date," remarked Peter Spiro, owner of Trade Winds Real Estate. "Originally, the deal had gone to a competitor, but they were unable to close for some reason; we stepped in and got the deal done."
In keeping with the firm's business plan, Trade Winds has an ambitious list of updates to the TimberChase property, both inside and out. The outdoor pool area will be beautified, while the parking lot will receive new sealing and striping. Trade Winds will add to the property's appeal with new landscaping. Interiors will see new blinds and lighting fixtures in all units, along with new appliances and flooring in select units. Once these improvements are complete, Trade Winds anticipates raising rents to match the restored value of the property.
TimberChase is Trade Winds' third multifamily acquisition in Alabama in the last 18 months, joining Corner Stone and Maplewood. Corner Stone is a 32-unit property in Montgomery that comfortably exceeded financial projections for the most recent quarter; low vacancy and low turnover enabled the firm to pay investors a 10% dividend. Maplewood, a 54-unit property in Hanceville, functions as off-campus housing for Wallace State Community College students. With the usual turnover that happens at the end of semesters, Trade Winds expects to raise rents at Maplewood and deliver even stronger returns to investors. Overall, both existing properties in Alabama have consistently met or exceeded investors' expectations.
Added Spiro: "We've proven repeatedly that we get deals done with professionalism and create attractive opportunities for our investors. The real estate market in the Southeast is particularly hot right now, with multifamily properties ripe with potential for healthy returns."