ArgusLeader:In $52 million deal, Florida firm snaps up 18 Sioux Falls apartment complexes

ArgusLeader:In $52 million deal, Florida firm snaps up 18 Sioux Falls apartment complexes

Argus Leader
Press Release

In $52 million deal, Florida firm snaps up 18 Sioux Falls apartment complexes

A Florida real estate and property management company has made a major play into the Sioux Falls multi-family housing market.

Miami-based Tzadik Management says it has closed a $52 million deal to buy 18 apartment complexes located across Sioux Falls from four sellers. The apartment complexes include 721 total apartments.

Tzadik CEO Adam Hendry said his company has been searching the country for overlooked markets where housing values aren’t overheated. He found what he was looking for in Sioux Falls – a low-tax, business-friendly climate with low unemployment, a surging population and a lack of rental supply, he said.

“This market is fundamentally sound,” he said. “This checked all the boxes.”

The largest part of the deal was four apartment complexes from Murray Properties, including the Eagle’s Nest, Eastview, Lake Park and Arnold’s Park complexes, totaling 326 apartments. A deal with Ron’s Property Management included seven complexes, and Rensberger properties included six complexes totaling 143 units, most notably the Sycamore Courts complex. A final seller sold River Run apartment complex to Tzadik.

Tzadik currently owns about 4,000 apartment units in Florida. The company picked up additional apartment complexes in Georgia and Texas earlier this year.

“We’re open-minded,” Hendry said. “We’re very opportunistic.”

Tzadik is also looking at possible deals in Rapid City and other cities in the area, Hendry said. He hopes to turn his Sioux Falls operations into a regional hub for his properties. Hendry said it’s the largest multi-family deal he’s aware of in Sioux Falls and the first of its size featuring a company from Florida.

Residents of Tzadik’s Sioux Falls properties should be prepared for some rent increases. Hendry said many of the properties have rents that lag behind the market, and he intends to match it more closely, gradually raising rents over the next three years.

He touted his company’s management of the properties, the professionalism of its local administrative and maintenance staff, and its use of online portals to pay rent and make maintenance requests.

He said he’s already moved a property manager to Sioux Falls to work on the transition. Welcome signs are posted on many apartment building doors.

He committed Tzadik to spend a $5 million on upgrades and renovations to the properties to deal with deferred maintenance, landscaping and general improvements, he said.

“From a cash outlay, it’s very substantial,” he said.

Hendry and a friend started the company in Florida in 2007, on the brink of the Great Recession. When the housing market began to collapse, Tzadik started snapping up receivership status to acquire properties that could be resold. Tzadik eventually evolved into a company that owned and managed multi-family properties.

Hendry said he aims to stay ahead of an overheated housing market in Florida by diversifying out elsewhere in the U.S. Hendry said his company uses pricing and lease-term models that regularly account for supply and demand – something he didn’t see a lot of multi-family housing owners using in the Sioux Falls market.

But the local market is a “hidden gem,” he said. And he’s been working to acquire apartments in the city full-time since April.

“It’s been a wild ride,” he said.

MarketWatch: 3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Sioux Falls Two-State Portfolio

MarketWatch: 3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Sioux Falls Two-State Portfolio

Marketwatch
press release

3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio, Invests in Booming Sioux Falls Market

Tzadik Management closed on their latest attainment of 721 apartments in Sioux Falls, South Dakota in unique fashion on Monday. While simultaneously re-capitalizing on most of their Florida portfolio that was initially acquired back in 2014, Tzadik Management obtained the capital needed to close on multiple new apartment communities. This is yet another acquisition this year for Tzadik, who have closed on deals in Texas and Georgia in 2018.

This latest transaction is in line with the company’s recent investment strategy, targeting secondary, tertiary and quaternary markets to help facilitate their rapid portfolio growth despite inflated and distorted real estate markets. “We feel strongly that this latest addition allows us to both diversify our portfolio and increase our financial levers ahead of our industry competitors,” said Chief Financial Officer, Austin Griffin.

As one of the most fundamentally sound markets in the United States, Sioux Falls was very intriguing, providing some of the lowest unemployment rates in the US and a tremendous lack of rental supply despite the surging population growth. “Sioux Falls exhibits a multitude of demographic factors that should survive this ‘Melt Up’ and the forthcoming Big Short 2.0,” said Chief Executive Officer, Adam Hendry. These economic factors were the deciding influence for Hendry, who spearheaded the deal alongside Senior Vice President of Business Development, Michael Davalos. Davalos, who has been with Tzadik for the last several years, has helped entrench the company in several new emerging markets across the United States.

Tzadik structured what could be considered deal of the year, where $20M in preferred equity was raised via a family office with only a current pay, no accrual or profit share, thus reinvesting it in Sioux Falls, capitalizing on a healthy cash flow arbitrage by a loan from an institutional family office.

Tzadik is a growing, innovative, and driven real estate and property management company based in Miami, Florida. Since its formation in 2007, Tzadik has managed over $800 million in apartment complexes and over 15,000 units in over 20 states as well as the Caribbean. Through excellent management, a focus on company culture, and a tech driven style of operating, Tzadik management has established a reputation for building lasting relationships.

Globe News Wire: 3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio

Globe News Wire: 3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio

GLOBE NEWSWIRE
Press Release

3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio, Invests in Booming Sioux Falls Market

Tzadik Management closed on their latest attainment of 721 apartments in Sioux Falls, South Dakota in unique fashion on Monday. While simultaneously re-capitalizing on most of their Florida portfolio that was initially acquired back in 2014, Tzadik Management obtained the capital needed to close on multiple new apartment communities. This is yet another acquisition this year for Tzadik, who have closed on deals in Texas and Georgia in 2018.

This latest transaction is in line with the company’s recent investment strategy, targeting secondary, tertiary and quaternary markets to help facilitate their rapid portfolio growth despite inflated and distorted real estate markets. “We feel strongly that this latest addition allows us to both diversify our portfolio and increase our financial levers ahead of our industry competitors,” said Chief Financial Officer, Austin Griffin.

As one of the most fundamentally sound markets in the United States, Sioux Falls was very intriguing, providing some of the lowest unemployment rates in the US and a tremendous lack of rental supply despite the surging population growth. “Sioux Falls exhibits a multitude of demographic factors that should survive this ‘Melt Up’ and the forthcoming Big Short 2.0,” said Chief Executive Officer, Adam Hendry. These economic factors were the deciding influence for Hendry, who spearheaded the deal alongside Senior Vice President of Business Development, Michael Davalos. Davalos, who has been with Tzadik for the last several years, has helped entrench the company in several new emerging markets across the United States.

Tzadik structured what could be considered deal of the year, where $20M in preferred equity was raised via a family office with only a current pay, no accrual or profit share, thus reinvesting it in Sioux Falls, capitalizing on a healthy cash flow arbitrage by a loan from an institutional family office.

Tzadik is a growing, innovative, and driven real estate and property management company based in Miami, Florida. Since its formation in 2007, Tzadik has managed over $800 million in apartment complexes and over 15,000 units in over 20 states as well as the Caribbean. Through excellent management, a focus on company culture, and a tech driven style of operating, Tzadik management has established a reputation for building lasting relationships.

New Tool From Zillow Lets Renters Apply for Lease, Pay Rent Online

New Tool From Zillow Lets Renters Apply for Lease, Pay Rent Online

Real estate website Zillow has long been an online marketplace for finding rental properties. Now it wants to help landlords manage those renters after they’ve moved in.

The company announced Tuesday that it’s launching property management tools aimed at bringing the landlord-renter relationship online. The features include paying and collecting rent online and online applications that allow renters to apply to multiple properties with just one application.

“Renters tell us they want the entire rental process to happen online, from search to application to payment,” said Zillow president Jeremy Wacksman in a statement. “However, most landlords don’t have the resources to offer these services. We’re excited to provide the technology to help renters and landlords have a better experience.”

Zillow will charge a $29 fee for the online application. Experian will execute the application’s credit report while Checkr will provide a background check and eviction history.

The new features are just the latest move by Zillow to expand its business outside of the listing service that brought it to prominence. In April, the company jumped into homebuying and selling with Zillow Offers, which is expected to pour between $75 million and $250 million into homes this year, bringing Zillow into direction competition with iBuyers like Opendoor and Offerpad. Zillow Offers is currently in Phoenix and Las Vegas, and will expand to Atlanta in the fall.

The move also puts Zillow in direct competition with a number of existing property management platforms. Cozy is a platform that provides similar tools for free, as well as a rent estimate and property analysis for a fee. Houserie is similar platform that was recently purchased by e-commerce site Overstock.

 

Find Full Article On Curbed.Com

3 Qualities to Look for in an Effective Property Manager

3 Qualities to Look for in an Effective Property Manager

Property management is a profession that overlaps and intersects with many other fields, such as accounting, marketing, construction, law, insurance, and many more. This makes it very hard to find or identify a good property manager versus an average or below-average one.

The three qualities of an effective property manager are transparency, maintenance capabilities, and limited scope. As the owner of a property management company myself, here’s why I believe these three qualities matter.

 

Read More Here: https://www.allpropertymanagement.com/blog/2018/05/18/qualities-of-an-effective-property-manager/