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/

Texas Re-Entry Acquisition

Texas Re-Entry Acquisition

Case Study

Texas Re- Entry Acquisition

Property: Cranbrook Forest – 260 Units
Acquired: July 2018

Opportunity:
Value-add re-entry into the bustling Houston market. Cranbrook Forest at time of acquisition had an economic occupancy of 68% despite the Houston multifamily showing strong appreciation and momentum with occupancy, absorption, rental rates, and job growth on a positive slope year after year.

Total Capitalization

18M

Cash on Cash

11.5%

Internal Return Rate

19.2%

Equity Multiple

2.1X

Challenge

Obtaining Creative Financing
Rebranding the Asset
Leasing Up/Stabilizing the Occupancy
Clearing Up AR
Deferred Maintenance
Partnering With a Syndicator Group

Execution

Due Diligence Completed in 2 Days
Capex and Proforma Budgets Completed Within 5%
Staffed and Trained Property Two Weeks Before Closing
Stabilized Asset and Beat Proforma Targets By 60 Days

Testimonial

“Texas offers a myriad of strong investment opportunities. Despite the devastation from Hurricane Harvey and economic struggles due to the oil industry slump, Texas is known for housing many innovative technology companies and will most definitely continue to grow.”

SVP of Business Development, Michael Davalos

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

(786) 295-9568
BIZDEV@TZ-M.COM
11098 Biscayne Blvd, Miami, FL 33161

Cross State Georgia Acquisition

Cross State Georgia Acquisition

Case Study

Cross-State Georgia Aquisition

As a chance to re-enter the Georgia landscape, Tzadik found itself with an off-market portfolio consisting of 1,010 units across Atlanta, Macon, and Albany.

Property Acquired April 2018

Equity Multiple

3X

Total Capitalization

42M

Cash On Cash

15%

Internal Return Rate

36%

Challenge

An absence of strong marketing and property management had resulted in high staff turnover, tenant dissatisfaction, and underperformance. A severe backlog in deferred maintenance, paired with a heavy CAPEX lift had to be addressed and coordinated across three cities. 80% occupied at acquisition.

Strategy

Successfully secured bridge financing at 85% of cost and immediately reinvested capital into improving property infrastructure, management services, and marketing. Upon stabilization, the property will be taken to permanent financing.

Outcome

  • Occupancy at 88%
  • Over 50 units upgraded in less than 3 months.
  • Strong onsite company culture
  • Improved online presence

Testimonial

“This portfolio had a lot of employee turnover, while also being overstaffed which led to poor occupancy and overall NOI that considerably lagged the market.”

Adam Hendry, Tzadik Management CEO

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

(786) 295-9568
BIZDEV@TZ-M.COM
11098 Biscayne Blvd, Miami, FL 33161