​16 North Goodman Street

Located in the heart of Rochester's desirable Neighborhood Of The Arts, this 21,000 square foot office building was purchased in late 2017 with the plan to increase rents, decrease expenses and therefore increase investor equity.  Managing partners liked the superb location of the asset, surplus of parking (75 spots), and the lack of any major deferred maintenance.
Project Highlights
  • Purchased for $1,000,000 utilizing $800,000 in bank financing and $300,000 in investor capital.
  • The 5 year business plan included increasing rents to market value as leases expired, reduce operating expenses to normal levels, perform smart capital improvement projects, and refinance in year 5 after increasing value and return investment capital back to equity partners.
  • Increased gross revenue from $198k to $224k.
  • Reduced expenses from $128k to $93k, increasing net operating income by 47%, and increasing annual free cash flow from $16k to $76k.
  • In 2020, property re appraised for $1.6 million.  Managing partners refinanced the property after increasing value and returned $300,000 back to investment partners in tax free debt level distribution.  Equity partners will continue to earn $52,000 a year in free cash flow, resulting in a 10 year annualized internal rate of return of 20.98%.

JW On Monroe (441-449 Monroe Avenue)

Located in the Pearl Meigs Monroe neighborhood (The Garden District) this 23,000 square foot mixed use building is comprised of 22 apartments and 2 retail storefronts.  This property was purchased in 2018 and was in quite the amount of distress, suffering from rents well below market and poor occupancy due to management issues, apartment homes and common areas being in very bad condition.  Managing partners liked the location of the property, it had good bones with a newer roof and newer windows, high ceilings, great natural light and tenant paid utilities.  The business plan was to reposition the asset by renovating apartments and common areas, perform significant rebranding, deliver "affordable" small luxury apartments to the high demand market of naturally occurring affordable housing.
Project Highlights
  • Purchased for $775,000 with $620,000 in bank financing and $530,000 in investor capital for purchase and rehab budget.
  • The two year business plan included renovating apartments and common areas; increasing rents to market value.  After stabilizing post rehab occupancy and asset value, management would perform cash out refinance to return investment capital back to investment partners.
  • Increased annual rents from $152,412 to $215,000, increased annual net operating income from $76k to $131k, a 72% increase.  Increased annual free cash flow from $24k to $79k.
  • In 2020 property re appraised for $1.45 million.  Managing partners refinanced the property after increasing value and returned $530,000 back to investment partners in tax free debt level distribution.  Equity partners will continue to earn $50,000 a year in free cash flow, resulting in a 10 year annualized internal rate of return of 23%.​

The above completed projects are just two recent examples in our collective 37 years of managment and development experience!  Contact us if you wish to see more!