NEW YORK, NY - A joint-venture between Trevian Capital and Crown Properties announced its $34,650,000 acquisition of three garden-style multifamily properties totaling 407 units in Elgin, Illinois, Madison, Wisconsin, and Chesterton, Indiana.
Trevian and Crown acquired the three-asset portfolio from a longtime family owner/operator who undermanaged the assets. The 1970's and 80's vintage portfolio was 94% occupied at the time of closing. The business plan is to cure deferred maintenance, implement institutional management, modernize units and finishes, add amenities, rebrand the properties, and bring rents to market.
The repositioned assets will provide quality workforce housing to the broad market segment of residents that are priced out of single family ownership and Class A product. Trevian and Crown plan to spend in excess of $3,500,000 in upgrades throughout the portfolio in the near term.
Trevian and Crown were able to navigate a complex deal, whereby all three properties were in foreclosure and being managed by a receiver, and a fourth property, also in default, needed to be sold simultaneously.
"We are excited for the opportunity to breathe new life back into these assets and have them become cornerstones of their communities," said Michael Hoffenberg, Founder and Managing Principal of Trevian Capital. "Trevian is more commonly known for its bridge lending platform, where we are very active in the transitional and value-add multifamily sector helping borrowers execute on this exact strategy. Our role in the world of special situations puts us in a unique seat to make strategic multifamily acquisitions ourselves," added Hoffenberg. "Similar to how we operate in our lending platform, our ability to provide the seller with speed and certainty of execution, won the deal for us."
"This acquisition exemplifies the need to preserve our housing stock that caters to the working-class. Once revitalized, these properties will be attractive to individuals and families who want to live in clean and safe communities that they can be proud of," said Matthew Lefkowitz, Principal of Crown Properties. "We are excited to partner with Trevian Capital and bring our collective vision to fruition."
Source: Trevian Capital / #Apartments #Multifamily