16 Akers, LLC

Investment Description

Property

  • Apartment Buildings consisting of 16 units
  • Akron, Ohio
  • Value Add Project

Property Financials 

Acquisition

1. Purchase Price $540,000
2. Capital Improvements $55,000
3. Closing Fees & Carrying Costs $5,000
4. All-In Costs $600,000
5. Current Net Operating Income $53,000
6. Current Cap rate 9.8%

Stabilized Projections in 21 months

1. Net Operating Income $73,250
2. Stabilized Cap Rate 12.16%
3. Stabilized Value @ 8 Cap $915,625
4. New Loan Amount $640,937
5. Equity Created $274,687
6. Cash Out Refi Proceeds $40,000
7. Annual Cash Flow After Debt Service $26,000

Investment

  • Price Per Share: $100,000
  • Shares Available 6
  • Term 18 Months
  • Exit Strategy:
  1. Refinance within 18 months to pay back investors & disburse refi proceeds
  2. Then Hold for 10+ years for cash flow and to build long term equity

 Return On Investment

Each Unit of $100,000 will yield the following approximate projections

Note: If an investor brings in $300,000, they would simply receive 3 units and 3 times the amounts below)

1. Fixed Preferred Return of 10%

  • Earns $10,000 in interest per year 
  • 10k (year 1) + 5000k (year 2, *only 6 months)
  • 18 month hold projected
  • This is paid while the investor’s principal is invested. For each Unit owned, the investor will earn $10,000 per year taxed at long-term capital gains rates.

2. 1% Kicker at Refi 

  1. Ex: 100,000 X’s 1% = $1,000 Kicker Bonus at Refi
  2. All Equity Returned 

Expected Return on Investment 

  • $15,000 Preferred return (10% annualized interest)
  • $1,000 Kicker @ Refi
  • = $16,000  Total Return On Investment in 18 months | 0.66% Annualized Return  

Asset Details

16 Akers, LLC
65-75 Akers Avenue, Akron, OH 44312 Map
ASSET TYPE PROPERTY CLASS UNITS STORIES ACQUIRED SOLD ON
Multi-Family B 16 2 10/19/20 08/26/22

DEAL SPECIFICS

  • 16 Units
  • B Class Location
  • 2 Miles from Downtown Akron & Akron University
  • Already 92% Occupied
  • 15-year history over 90% occupied
  • Garden-style apartments
  • Amenities:
  • New Decks
  • Updated Units
  • On-site maintenance for 16 years
  • Paved Parking
  • Shopping in Walking Distance