Five Things To Consider When Investing In Multifamily Real Estate Syndication Deals

Founder | CEO at Sterling Rhino Capital, we help people retire early through multifamily real estate investing.

Many people choose multifamily real estate as an investment option. Within this category is the syndication deal. Whether you intend this type of investment to be your sole focus or one of several investment aims in your portfolio, there are important considerations to weigh. In my work as a real estate investor and founder of a firm offering syndicate investment deals, I’ve developed five considerations any investor should explore before making a decision.

Syndication deals typically involve a group of general partners (GPs), a syndication group, or a group of passive investors or limited partners (LPs) to buy a larger asset. Each group has a distinct role in the deal. For example, for a deal involving a multifamily apartment asset, the LPs may invest in the asset but not perform physical

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Greystone Provides $22.9 Million in HUD-Insured Financing for a Multifamily Property in Dallas-Fort Worth, Texas

NEW YORK, Dec. 01, 2020 (GLOBE NEWSWIRE) — Greystone, a leading national commercial real estate finance company, has provided a $22.9 million HUD-insured loan to Bridgeview Multifamily to refinance a 147-unit multifamily property in the Dallas-Fort Worth suburb of Garland, Texas. The financing was originated by Eric Rosenstock, assisted by Paul Smyth and Cary Williams.

The $22,916,500 HUD-insured Section 223(a)(7) financing carries a 39-year term and amortization, along with a low, fixed interest rate. Constructed in 2015, Carriage Homes on the Lake consists of 15 three-story rowhouse buildings with one- and two- bedroom units. Residents of the gated, pet-friendly community have access to the clubhouse and business center, fitness center, swimming pool, and outdoor picnic and play area. The property is near the George Bush Toll Road and offers easy access to downtown Dallas via public transportation, as well as to the Firewheel Town Center, local shopping, entertainment and dining.

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Multifamily apartment investing: How Emma Powell achieved 93 units

  • Emma Powell, the owner of Highrise Group, naturally gravitated toward real estate after watching her childhood home be built from the ground up.
  • To build her empire, Powell employed a strategy she referred to as the “slow flip.”
  • Today, Powell owns 93 units spread across Arkansas, Idaho, and Utah, and has another 122 units under contract in Kentucky. 
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From an early age, Emma Powell, the owner of Highrise Group, was enamored by real estate. In her formative years, her family constructed their ideal dwelling from start to finish.

“They built the whole thing, a 5,000 square foot — my mom’s dream home,” she told Business Insider. “And I realized that was the source of my interest in real estate.”

Still, Powell’s journey into the real-estate-investing arena wasn’t a clear-cut path.

Years before she pulled the trigger on her first purchase, Powell worked as a

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Agent PHL Sells Rittenhouse Square Multifamily Investment Property

PHILADELPHIA, Nov. 23, 2020 /PRNewswire/ — Agent PHL powered by Compass is thrilled to announce the sale of 2020 Locust Street, a turnkey investment property in the coveted Rittenhouse Square submarket of Philadelphia. The Building was delivered 100% leased and occupied at the time of sale with 6 apartments and 1 commercial unit.

This generational asset proved its worth on the sales market, as multiple offers were procured during the listing process. Ultimately, The Building sold for full asking price ($2,250,000) at a 5.4% cap rate. The Property historically operated at 0% vacancy, with the apartments in perennial high demand due to Rittenhouse’s position as one of the strongest rental submarkets on the Eastern seaboard of the USA.

Ryan McManus of Agent PHL, the listing agent, had this to say about the sale:

“Even during unfavorable macroeconomic conditions, the sale of 2020 Locust Street exhibits the incredibly

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Greystone Provides $20.65 Million in Freddie Mac Financing for Sanford, FL Multifamily Duo

NEW YORK, Nov. 19, 2020 (GLOBE NEWSWIRE) — Greystone, a leading private national commercial real estate finance company, provided two refinancing loans for a multifamily portfolio in Sanford, Florida. The transactions were originated by Dan Sacks, Managing Director in Greystone’s New York office.

The properties include:

  • Aqua Link, a 140-unit property, which received a 10-year, variable-rate, $12,115,000 Freddie Mac mortgage. Renovated in 2020, the garden-style property spans 9 acres. Amenities for the two- and three-bedroom units include grilling area, coffee bar, common laundry, swimming pool, picnic area, playground, and clubhouse, with 321 surface parking spaces.
  • Stoneridge, a 120-unit property, which received a 10-year, variable-rate, $8,541,000 Freddie Mac mortgage. Built in 1975 and renovated in 2020, the garden-style property consists of studio-, one-, two-, and three-bedroom units. Amenities include a grilling area, coffee bar, common laundry, picnic area, playground, and clubhouse, with 188 surface parking spaces.

“It’s been a

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What are multi-family homes?

Multi-family homes can be a great way for novice real estate investors to get started buying properties that will generate passive income. However, these properties have some challenges that single-family homes don’t have. If you’re considering buying a multi-family home, here’s what you need to know before jumping in.



a large brick building: A Georgian-style duplex home in Savannah, Georgia


© Qingwa/Getty Images
A Georgian-style duplex home in Savannah, Georgia

What is a multi-family home?

A multi-family home is a single building that’s set up to accommodate more than one family living separately. That can range from a duplex, which has two dwellings within a single building, to homes or small apartment buildings with up to four units. (Buildings with more than four units are considered commercial properties.)

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The owner of a multi-family home can either live in one of the units and rent out the others, or live on another property and rent them all out. If you

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BSR REIT: Undervalued Investment In Texas Multifamily Real Estate (OTCMKTS:BSRTF)

Thesis

BSR REIT (OTCPK:BSRTF) is a small cap multifamily REIT with investments across the sunbelt region. Dilution to earnings has resulted from short-term capital recycling activities. Consequently, BSR’s stock price has lagged peer multifamily REITs. Capital recycling activity from tertiary sunbelt markets to primary sunbelt markets has concentrated the REIT in stable, growth-oriented markets that have fared well amidst uncertainty from COVID-19. These moves have made the REIT well-positioned for earnings growth going into 2021, allowing for potential stock price appreciation.

Portfolio Overview and Updates

A recurring theme for BSR since it went public is the transition from smaller markets to larger, more stable markets in the sunbelt. The primary markets that BSR has consolidated its holdings include Austin, Dallas/Fort Worth, Houston, Oklahoma City, and Northwest Arkansas.

In Q3 2018, BSR generated just 52% of its net operating income from these five markets. It had significant holdings in much smaller

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Distressed Multifamily Buildings Opportunity to Decommodify Housing

A new report argues that distress and declining values in rental properties is an opportunity for decommodification of multifamily buildings. (iStock; Chart via Furman Center)

A new report argues that distress and declining values in rental properties is an opportunity for decommodification of multifamily buildings. (iStock; Chart via Furman Center)

Distressed debt fund managers aren’t the only ones smelling opportunity from a coming foreclosure crisis.

A nonprofit seeking to help the poor says rental properties’ struggles present a chance to decommodify multifamily buildings.

The Community Service Society, which looks for systemic solutions to problems that create a “permanent poverty class” in New York City, expects non-payment of rent to trigger a wave of apartment building foreclosures.

When that wave hits, the group argues in a report, the city and state should make sure rental housing does not fall into the hands of new profit-seeking investors — as it did after the financial crisis of 2008.

The report suggests policy makers study solutions developed in the last recession, including a “First Look” program developed with New

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What Is Multifamily Commercial Real Estate, and Why Should You Invest in It?

When most new real estate investors think about buying an investment property, they automatically assume they should buy a single-family home. However, there’s another option: You could invest in multifamily commercial real estate, or apartment buildings and apartment complexes.

If you’re interested in learning more about the multifamily approach, read on. You’ll learn more about what multifamily commercial real estate is, the benefits and risks of this type of investing, and how to get started. Armed with this knowledge, you should have a better idea if investing in multifamily real estate is right for you.

What is multifamily commercial real estate (MFCR)?

At its core, multifamily commercial real estate (MFCR) is a term used to describe residential properties with more than five units. Most often, this term refers to an apartment building or apartment complex. However, there are quite a few different subtypes within the multifamily commercial real estate genre,

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Investcorp sells eight US multifamily real estate assets for over $900 million

Manama, Nov. 10 (BNA): Investcorp has sold eight multifamily properties located in Arizona, California, Florida and New York to multiple buyers for more than US $900 million, the corporation said.

 

The properties were garden and townhome-style apartment buildings located in major metropolitan areas.

 

Investcorp acquired the assets in 2016 and 2017 and completed numerous value-enhancing initiatives, increasing average monthly revenue per unit by approximately 20%, implementing select property and amenity upgrades and interior unit renovations as well as benefitting from the targeted markets’ consistently strong housing fundamentals with favorable supply / demand dynamics, it said in a statement.

 

“These transactions demonstrate our continued execution of our real estate strategy, targeting attractive, cash flow generating assets across the US,” Managing Partner for Investcorp’s Private Wealth Yusef Al Yusef, said.

 

“We see increasing demand for multifamily properties and we remain focused on delivering long-term

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