The Forest at Fenwick
15 Stardust Way
Johns Island SC, 29455
5.75% + 30 day LIBOR
- The owner was about to go into Bankruptcy at the time of selling and needed to close quickly. The property was originally going to be turned into a condominium, but only 8 units had been sold.
- Our plan was to close quickly with short term bridge financing, buy back the 8 condos, renovate the existing clubhouse and pool area, minor interior upgrades of flooring, hardware, and lighting. Raise rents from $800 to $1,050.
- Well located B Asset in Johns Island, a submarket of Charleston.
- Anticipate a Refinance after 18-24 months.
- Part of proceeds were to buy out fractured condos; $100,000 per condo.
- Since closing, bought 5 out of 8 condos for an average price of $90,000.
- Clubhouse renovation complete, raised rents from an average of $886 at purchase to $1140 on all renovated units plus $45 in water bill back. So far 42 of the 77 units have been renovated. While maintaining on occupancy over 85%.
- Cleaned up all buildings with exterior trim work, rebranded with new signage, all new pool furniture, added a pet park,
- Property reappraised in Q3 2016 at roughly $8 million, creating $1.7 million in value.