South Dakota State Wide Acquisition

Case Study

South Dakota State Wide Acquisition

Acquired: Dec, 2018/March 2019

Units: $50M/$88M

Opportunity:
A chance to invest in a market that historically has been insulated from economic fluctuation. Quaternary market with steady population growth for decades.

Total Capitalization

Cash on
Cash

Internal Return Rate

Equity Multiple

Challenge

Flyover State
Low Transaction Volume
Multi-Site Management
Properties Historically Owned By Single Operators

Execution

Combined four different sellers into one closing.
Completed extensive deferred maintenance within two months of closing.
Created a structured management platform to handle 30+ properties in the region.

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

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

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