We are actively looking to acquire multifamily properties, multifamily debt (performing or non-performing) and equity interests in existing multifamily partnerships.
A. Multifamily Property Acquisitions
The typical deal size is 150-500 units, built after 1990 with upside in property condition, management or financial structure (i.e. there is unattractive debt that is maturing in two to four years). Typical first mortgage leverage is 65% to 80% floating or fixed through Fannie Mae, Freddie Mac or HUD (223 f loan program).
B. Multifamily Note Acquisitions
The strategy on these acquisitions is to acquire the property through foreclosure. Often these acquisitions are on properties that are substantially underperforming but have great upside. These acquisitions initially require 100% equity and must close fast (usually within 30 days). The property is recapitalized post closing (usually 12 months after closing) under the same terms as an outright acquisition (Fannie Mae, Freddie Mac or HUD).
C. Partnership Acquisitions
The balance of our acquisition activity focuses on purchasing equity interests in existing multifamily properties by investing capital towards property improvements in exchange for a current pay rate and percent ownership in the property. Owners find that we are far superior to third party management because our financial interests are properly aligned with the property. We provide the required capital investment, management and renovation work in exchange for an equity interest in the property. We structure the investment where our interests can either be bought out upon refinance or sale, or we will stay in the property long term.
Please submit property information to:
David Bornstein
Principal
Andover Hill Investments, LLC
4320 Winfield Road
Cornerstone at Cantera, Suite 200
Warrenville, IL 60555
630-664-3300 (phone)
630-689-9463 (fax)
[email protected]