A common question I get is “Chris, how can I invest with Terrance Doyle in one of his VareCo deals?” Now that I’m working with Lon and Ironton Capital, we’re able to bring you one of his deals!
Opportunity: Samuel Apartments
- VareCo just got a 34-unit apartment complex under contract. Ironton Capital secured a $1,000,000 allocation for accredited investors.
- Market: Denver metro area and a 15 minute drive from downtown.
- Size & Vintage: 34 Units (2 17 unit buildings), built in the 1970’s.
- Current Class C with planned renovations to Class B+.
- Business Plan: Improve interior units, exterior facade, and common areas with $930K budget to lift rents by 60% and force asset appreciation.
Why We Like This Deal:
- Seller has owned this property for 26 years, leaving it underperforming with in-place rents well below market. VareCo will target a 60% increase in rents post renovations.
- Completely off-market, essentially no pursuit competition
- Located 0.5 miles south of Midtown Plaza, which is a 41-unit project VareCo successfully exited in April 2022 (month 18 of a 36- month anticipated hold, at a price 36% higher than anticipated).
- Large open space between the two buildings allowing for amenity creation, similar to the pergola & common area which VareCo created at Midtown Plaza.
- Negotiated the seller down $250,000 during inspection objection, for an effective purchase price equal to $157,350 per unit. This is an attractive entry basis within the submarket.
- Samuel Apartments is a perfect fit for the ideal VareCo value-add business plan consisting of exterior and interior modernization, amenity enhancements, and operational improvements.
