Texas Re-Entry Acquisition

Texas Re-Entry Acquisition

Case Study

Texas Re- Entry Acquisition

Property: Cranbrook Forest
Acquired: July 2018

Opportunity:
Value-add acquisition bustling Houston market. Houston multifamily has continued to show 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

Lack of effective property management and financing difficulties resulted in a need to sell.

Execution

Through implementing a hands-on approach, capital improvements and new property management takeover took less than six months to complete.

Outcome

Foothold in Texas

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

Will Neuner

Will Neuner

Will Neuner

Will Neuner, currently Tzadik’s Senior Asset Manager, has been with Tzadik for many years and has seen Tzadik grow from 30 employees to 130 employees. First interning with Tzadik in the summer of 2013, Will learned property management from the ground up working between all of Tzadik’s properties in both Miami-Dade County and Broward County. Soon after completing his Bachelors degree in May 2015, Will returned to Tzadik full time as a Property Manager for the 7 properties located in Miami-Dade County. During his time as Property Manager, Will had an instrumental role in the sales of these 7 properties in Miami. Since returning full time, Will’s title has changed from Property Manager to Project Manager to Senior Asset Manager and he now manages all Capital Expenses, liens and violations and all hurricane related insurance claims. In addition to this, Will is the primary contact with our lenders and loan servicers and is responsible for tracking all of our escrow accounts allocated for Capital spending. Outside of Will’s day to day duties, he also plays a big role in new acquisitions as one of the leaders in the due diligence process.

Having great organizational skills along with a high skill level in Microsoft Excel, Will successfully tracks and manages all Capital spending for the company and can paint a picture of all improvements that have been made to each asset since purchasing. Because Will works with many different departments ranging from the on-site management team, the accounting department as well as the executive team, he is an ideal team player who lives by our core values, especially “we succeed together” and “keeping each other informed.”

Will graduated from Florida Atlantic University in 2015 with a degree in Urban and Regional Planning and also competed on the University’s Tennis Team.

 

Quotes to Live By

“There is no way around hard work. Embrace it. You have to put in the hours  because there’s always something which you can improve.” – Roger Federer

“You have to believe in the long term plan but you need the short term goals to motivate and inspire you.” – Roger Federer

“I know the price of success: dedication, hard work, and an unremitting devotion to the things you want to see happen.” – Frank Lloyd Wright

 

Fun Facts

  • Tennis Fanatic
  • Proud Pensacola Native

Michael Davalos

Michael Davalos

Michael Davalos

Michael has has been involved in the area of real estate and finance in Florida since 2001. Since then he has built a thorough foundation that uniquely qualifies him to match the evolving market with today’s demanding needs. Michael brings with him a level of knowledge, professionalism, and attention to detail that is exemplary of the Tzadik core values.
Michael specializes in the valuation, development, and marketing of various commercial real estate projects and capital markets with a focus on Multi Family housing and business development.

Hirsch Piekarski

Hirsch Piekarski

Hirsch Piekarski

Prior to Tzadik, Hirsch was the founder and director of a successful Non-for-profit organization for 19 years, located in Del Mar, California. There he oversaw and helped orchestrate all aspects of the organization, ranging from Educational classes to outreach and fundraising events. It was here where Hirsch gained a keen ability to analyze and manage, operations.

Hirsch joined Tzadik as an Asset Manager in May of 2015. At Tzadik, Hirsch helps develop and review our Proprietary Revenue Management Software that provides leading indicators on property performance. From reviewing monthly statements to monitoring performance reviews, Hirsch has his hand in every facet of Tzadik, providing guidance and the tools necessary for those around him to succeed.  Hirsch brings tremendous value in his ability to maximize the proficiency of Tzadik’s day to day business practice.