www.buytetonland.com
Timothy Anderson
Windermere Real Estate Teton Valley
Windermere Prestige Properties Henderson Nevada
pH 208 390 0737
email : buy@buytetonland.com
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BANK OWNED FORECLOSURE - POSITIVE CASH FLOW
Here is 247 units in the old Vegas area just East of the strip on Fremont. The bank has this as an REO fee simple deal and they are firm at 5MM no less.
That is about 20k a door. This is a C class deal, that has low rents and been mis managed. There are 3 buildings and across the board they are currently 85% occupied. Two of the buildings are cash flowing, one is not.
If you look below on the back of the napkin numbers the group that has the listing thinks pro-forma is at a 17 CAP. We need commission covered from the buyer.
Also here is the back of the napkin underwriting:
This is how the P&L should be according the reps:
(This is obviously quick & dirty, but paints the picture)
GPI: 1,111,500.00 (375 X 247 X12) –Took the low end rent number to be conservative
-Vacancy (111,150.00) – Took 10%, but it should be 5-6% only.
EGI: 1,000,350.00
Less Expenses:
Management (5%): 50,017.50
Maintenance: 24,000.00 ($2k per month)-variable calls only, no permanent staff member or could potentially give a free unit to someone to live on site.
Utilities: 12,000.00 (Common areas only, tenants should pay their own)
Insurance: 18,000.00 ($1500/mo)
Advertising: 12,000.00 ($1000/mo)
Taxes: 20,000.00 (.01 X purchase although it should be less)
Legal: 2,500.00
Total: $138,517.50
NOI: $861,832.50
Projected Cap Rate: 17.2%
Sunday, August 8, 2010
Saturday, August 7, 2010
Lehman Brothers Betting on Commercial Sales
www.buytetonland.com
Timothy Anderson
Windermere Real Estate Teton Valley
Windermere Prestige Properties Henderson Nevada
pH 208 390 0737
email : buy@buytetonland.com
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Bankrupt Lehman Betting on Commercial Sales
Bankrupt Lehman Brothers Holdings Inc. is betting its recovery on an increase in property values.
Alvarez & Marsal, the advisory firm overseeing the firm’s bankruptcy, has reinvested more than $1 billion in apartments, office buildings, and other commercial property located all over the country that is owned or financed by Lehman. The advisory firm hopes to salvage as much as possible from the $14.4 billion of commercial real estate in various stages of distress that Lehman owns.
Some observers say the strategy is questionable, but Alvarez & Marsal believe that they can recover $11 billion from the assets through careful management, more than double the amount they would likely get from a quick liquidation.
Source: The Wall Street Journal, Lingling Wei (08/04/2010)
Timothy Anderson
Windermere Real Estate Teton Valley
Windermere Prestige Properties Henderson Nevada
pH 208 390 0737
email : buy@buytetonland.com
---------------------------------------------
Bankrupt Lehman Betting on Commercial Sales
Bankrupt Lehman Brothers Holdings Inc. is betting its recovery on an increase in property values.
Alvarez & Marsal, the advisory firm overseeing the firm’s bankruptcy, has reinvested more than $1 billion in apartments, office buildings, and other commercial property located all over the country that is owned or financed by Lehman. The advisory firm hopes to salvage as much as possible from the $14.4 billion of commercial real estate in various stages of distress that Lehman owns.
Some observers say the strategy is questionable, but Alvarez & Marsal believe that they can recover $11 billion from the assets through careful management, more than double the amount they would likely get from a quick liquidation.
Source: The Wall Street Journal, Lingling Wei (08/04/2010)
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