DJ had sold a business including real estate and reinvested the funds as a partner in an apartment building rehab venture. After rehabbing units and increasing rents his initial investment grew but not at the rate he was initially told it would. DJ made money but wanted to own something on his own again. That’s where Accruvia Group came in. After assessing the families goals we felt splitting the investment to bring diversity was important. After reviewing hundreds of investments and negotiating on dozens we helped him invest in two geographically diverse and use diverse properties, both with a clear strategy in mind. One was a very strong regional grocery store that had occupied the building for nearly 50 years and whose rent was well below market. The other a national brand big box retailer that was in a unique location where new development was happening. In order to take advantage of both opportunities DJ used partial financing on each. Both properties have corporate guarantees, rental increases and clear upside based on purchasing well below replacement value.
SOLD MULTI-FAMILY RESIDENTIAL for $5,995,000*(55% ownership stake) after closing costs proceeds were $5,595,400. PURCHASED NNN COMMERCIAL for $10,595,000 with $5,000,000 in financing at 5.5% interest.
| SOLD | PURCHASED | PURCHASED | |
| Apartment | NNN Grocery | NNN Big Box | |
| Sales/Purchase Price | $5,595,400 | $5,600,000 | $4,495,000 |
| INCOME | |||
| Gross Monthly Rent | $20,800 | $25,000 | $27,500 |
| Gross Annual Rent | $249,600 | $300,000 | $330,000 |
| OPERATING EXPENSES | |||
| Property Taxes | $57,800 | Paid by tenant | Paid by tenant |
| Insurance | $14,000 | Paid by tenant | Paid by tenant |
| Maintenance | $16,500 | Paid by tenant | Paid by tenant |
| Management Fee 5% | $12,480 | ||
| HOA | $0 | Paid by tenant | Paid by tenant |
| Total Op.Ex. | $100,780 | $0 | $0 |
| Financing Expense | $0 | $165,800 | $194,200 |
| Net Income | $148,820 | $134,200 | $135,800 |
| Net Income Totals | $148,820 | $270,000 |
