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

Disaster Management and Loss Mitigation Strategy

Disaster Management and Loss Mitigation Strategy

Case Study

Disaster Management and Loss Mitigation Strategy

Opportunity:
Hurricane Mathew left a firm imprint on South Florida real estate after it passed. With over 4,000 units in the state, an effective planning and mitigation strategy had to be prepared and implemented to secure all assets.

Challenge

The spontaneity and sheer strength of natural disasters are a major cause for concern in the real estate industry. Protective measures must be established to protect the residents and ensure the structural integrity of the properties.

Execution

Successfully arranged for the storm weeks in advance through initiating proactive maintenance and resident awareness. Post-storm restoration teams were on the ground within less than 24 hours, and proper documentation allowed for the recapture of lost business profit.

Outcome

  • Post Storm Asset Inspection Protocol Savings: 3.75MM
  • Stabilized Florida occupancy levels at 93%
  • Improved natural disaster preparedness plan
  • Excellent response from tenants on tenant safety measures

Testimonial

“Tzadik’s unity as a company and relentless work ethic allows for us to quickly prepare a disaster management plan, and coordinate with all tenants to best ensure their safety during critical events like Hurricane Mathew.”

Senior Asset Manager Will Neuner

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

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

Maximizing Value & Minimizing Costs of Cardinal Housing

Maximizing Value & Minimizing Costs of Cardinal Housing

Case Study

Maximizing Value and Minimizing Costs of Modular/Cardinal Housing

Acquired: Oct. 2014

Property: The Landings

Opportunity:
A chance to experience and utilize the efficiencies of modular housing in Winter Haven, Florida.

Challenge

70% occupied at acquisition with an apparent lack of management and property maintenance, dated and distressed externally and internally.

Execution

By gaining a thorough understanding of the design and structural engineering of cardinal style properties, unit upgrades and property revitalization became more streamlined and ultimately required less time and capital.

Outcome

  • Highest companywide occupancy at 99%
  • Consistently achieves over 95% of GPR
  • Proactive management increased overall tenant satisfaction
  • Improved curb appeal received a great response from tenants

Testimonial

“Through acquiring a modular-style community, rehabilitation would essentially become more efficient and less costly. This was a great opportunity to understand and appreciate the design and utility of modular housing.”

CVO, David Runyon

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

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

Institutional Level Reporting Across All Asset Types 

Institutional Level Reporting Across All Asset Types 

Case Study

Institutional Level Reporting Across All Asset Types

Opportunity:
A large financial institution seeking third-party management of their multi-asset portfolio.

Challenge

Responsibilities included analyzing the economics and business strategies for all newly acquired assets and implementing weekly accounting closure, as oppose to monthly.

Execution

Successfully repositioned properties through extensive inhouse analyses with a goal of maximizing rent in any market.

Outcome

  • Total reporting compliance
  • Quick stabilization for hold, refinance, or sale
  • Increased accounting periods led to better decision making
  • Excellent client satisfaction

Testimonial

“Our team quickly assumed management of the various properties and effectively assisted in a quick turnaround sale, which we completed in record time.”

CFO, Austin Griffin

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

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

Florida Record 2,199 Unit Acquisition

Florida Record 2,199 Unit Acquisition

Case Study

Florida Record 2,199 Unit Acquisition

Acquired: Aug. 2014

Properties: Bella Mar, Brandywyne, Country Place, Del Rio, Jacksonville Heights, Kings Trail, Lago Bello, Lakeland Manor, The Landings, Mount Dora, North Washington, Rolling Hills, Tanglewood

Opportunity:
Statewide value-add acquisition of over 2,100 units, consisting of 13 properties and spread out across eight different cities throughout Florida; Tampa, Winter Haven, Jacksonville, Lakeland, Mount Dora, Sarasota, Orlando, and Eustis.

Total Capitalization

87M

Cash on Cash

25%

Internal Return Rate

36%

Equity Multiple

3X

Challenge

Assets were operated under inadequate management, and financial performance was below market for over a year.

Execution

Successfully implemented new management, who brought new policies and enhanced unit turn procedures. Reinvestment of capital sustained all property improvements through to stabilization.

.

Outcome

  • Seamless purchase of over 2,000 units
  • 200% increase in portfolio valuation as of 2018
  • Occupancy at 95%
  • Statewide implementation of company culture

Testimonial

We look to purchase off-market and special circumstance real estate. This acquisition completely encapsulates our investment philosophy and the future of our company.”

CEO, Adam Hendry

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

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