“Melt Up” 1970’s “Stagflation” Projection still the forecast by Tzadik, continues Midwest push

“Melt Up” 1970’s “Stagflation” Projection still the forecast by Tzadik, continues Midwest push

Star Tribune
Press Release

A few weeks after closing on their third acquisition in South Dakota in under a year, Tzadik Management is gearing up for another large push throughout the entire Upper Midwest region

SIOUX FALLS, S.D., July 29, 2019 (GLOBE NEWSWIRE) — A few weeks after closing on their third acquisition in South Dakota in under a year, Tzadik Management is gearing up for another large push throughout the entire Upper Midwest region. In addition to a new large acquisition in South Dakota, Tzadik plans on expanding into North Dakota, Nebraska and other potential states in the coming months.  

As what they believe to be the soundest market regions in the United States, the upper Midwest provides a very intriguing opportunity with some of the lowest unemployment rates in the US and an overall lack of rental supply despite the booming population growth. “The stability of the Midwest combined with our company culture, performance management and overall experience are all positive indicators toward us ensuring our strategy gets executed,” said Executive Vice President, Michael Davalos. 

Tzadik has even dipped into the commercial real estate market, purchasing a large office space in downtown Sioux Falls and plans to continue to explore similar opportunities moving forward. “Commercial isn’t something new to us necessarily, it has just been hard to make sense of it recently based on existing cash flow. We realized to make a permanent stake in the market, we needed both an office and strategic investment that has met and exceeded our criteria,” said Chief Executive Officer, Adam Hendry. 

Tzadik’s initial plunge into the Midwest has been driven by a “Melt-Up” and potential Stagflation 1970’s projection from the company’s executive team. “If the federal reserve is truly determined to drop rates before any sustained market pull back, then we have to be prepared for a Melt-Up, not a Melt-Down,” continued Hendry. “Everyone thinks they are preparing for another 2008, but most likely we think the upcoming crash with be much different.” 

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.

 

Tzadik adds 3 additional communities in Sioux Falls, completes 12.8M acquisition

Tzadik adds 3 additional communities in Sioux Falls, completes 12.8M acquisition

SIOUX FALLS, S.D., July 03, 2019 (GLOBE NEWSWIRE) — Tzadik Management closed on an additional 3 communities in Sioux Falls Monday, expanding on their growing presence in the market. The 12.8M purchase is the third acquisition that has Tzadik has made in Sioux Falls since October of 2018, bringing them to 25 total communities and over 1,350 apartment homes. 

This comes on the heels of the ribbon cutting of their new leasing office located near downtown Sioux Falls. Tzadik Management recently joined the cities Chamber of Commerce, aiming to further involve themselves in the city’s development. The new offices location also allows for the team to maintain more immediate access to their communities.

The newest communities added to the portfolio are:

  • Turning Leaf – 1311 N. Cleveland Ave, Sioux Falls, SD 57103
  • Brookshire – 609 N. Cleveland Ave, Sioux Falls, SD 57103
  • Woodstone – 3113 W. 12th St, Sioux Falls, SD 57104

Tzadik has begun to more aggressively tap into the Sioux Falls talent market, highlighted by the addition of Regional Vice President, Tessa Frank. “Having worked in Sioux Falls for several years, I am delighted to see Tzadik continue to be apart of the cities growth. I’m excited about the team we are building and look forward to helping make a difference in our community” said Frank. Gearing their recruiting efforts toward local talent, combined with unparalleled company culture and industry leading benefits packages, Tzadik has seen immediate returns from their latest team additions. “Having a team that has been in Sioux Falls for many years has really been a bonus for us and we are eager to see where it takes us” added Frank.

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. 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.

Tzadik acquires 4 additional communities in Sioux Falls

Tzadik acquires 4 additional communities in Sioux Falls

Press Release

Tzadik adds 4 communities to their Sioux Falls Portfolio

Tzadik Management acquired 4 new communities in Sioux Falls last week bringing their community count to 22. The 4 communities, totaling over 430 apartments, bring Tzadik’s total apartment count to well over 1,000 in Sioux Falls alone.

With communities located all around Sioux Falls, the team is well equipped to onboard the newest additions. Similar to their existing product, Tzadik plans to put in millions in capital improvements in an effort to help invigorate the communities. “We saw an opportunity to add to what we are building here” said Chief Executive Officer, Adam Hendry. “These communities fell right in line with our strategy and we are excited to have the opportunity to grow”.

The 4 new additions are located at:

 

  • Mallard Cove – 2000 W. 6th St, Sioux Falls, SD 57104
  • Parkside – 4304 E. 18th St, Sioux Falls, SD 57103
  • Cleveland Heights – 2708 E. 8th St, Sioux Falls, SD 57103
  • Willowwood – 1600 S. Rock Creek Dr, Sioux Falls, SD 57103

 

Tzadik plans to continue to monitor opportunities not just in Sioux Falls, but throughout the entire Midwest region. “We like a lot from what we have seen so far in our due diligence and I would expect to see many more acquisitions like this in the near future” claimed Hendry.

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. 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.

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.

Tzadik Management Recapitalizes, Closes on Two Key Refinances

Tzadik Management Recapitalizes, Closes on Two Key Refinances

Press Release

Tzadik Management Recapitalizes, closes on two key refinances

Tzadik Management closed out a busy second quarter by closing on two separate re-finances totaling over $122,000,000. These deals come at a time where Tzadik believes the markets are at or very near all-time highs. Spearheading the refinances for Tzadik was Vice President, Michael Davalos. “These two deals represented a challenge, both logistically and mentally. Coordinating efforts between 15 different properties in 9 different cities proved to be hard work for everyone involved. In the end, we were pleased with our efforts and succeeded in hitting our targets,” said Michael Davalos.

The first of the pair of re-finances closed in early June for a total of $14 million and re-capitalizes one of our assets in Tampa. It also paves the way for permanent financing in the next 14-18 months. “The property has taken off from when we initially acquired it” said Chief Investment Officer, Alex Arguelles. This new round of funding will allow Tzadik to lower costs as well as complete all capital improvements as planned.

Tzadik also completed a massive re-capitalization of their initial portfolio with a CMBS backed loan for $108 million. This deal helped to dramatically lower costs, increase ownership equity, and also provided all the funds needed to complete capital improvements across the entire portfolio of 2,383 units for the next ten years. This refi hopes to help guide the company through the projected rigors ahead, “It helped us be financially responsible by strategically repositioning ourselves as long-term multifamily apartment holders, and bracing ourselves for what we view to be quite an uncertain marketplace in the next few years. We believe as the current cycle comes to an end, Tzadik will outperform the overall market and look to never stop growing due to economic forethought” said Chief Executive Officer, Adam Hendry.

With these refinances closed, the company is concentrating its efforts on maximizing their current portfolio of real estate as well as expanding into the world of third party management. “It’s the next logical step for us to take as a company. We want to take everything we have learned in managing class C and B multi family and help other property owners who are frustrated with this space. Our systems work, and we want the chance to prove it to other owners.” says David Runyon, Chief Visionary Officer.

Tzadik is a fast growing, innovative, and purpose driven real estate Company based in Miami, Florida. Since its formation in 2007, Tzadik manages over $300 million in apartment complexes and over 4,500 units throughout the entire state of Florida. Through excellent management, a focus on company culture, and a tech driven style of operating, Tzadik has established a reputation for hard work, responsible management, and enviable investor gains.

Over 1,000 Off-Market Units Bought by Tzadik Management

Over 1,000 Off-Market Units Bought by Tzadik Management

ATLANTA, April 12, 2018 (GLOBE NEWSWIRE) — Tzadik Management announced Monday the acquisition of six off market, direct to seller, multi-family apartment communities in the state of Georgia. This acquisition totals 1,010 units that span between Houston, Dougherty and Clayton Counties. This marks yet another group of properties Tzadik has acquired outside the state of the Florida.

A groundbreaking acquisition for Tzadik Management, they now own and manage 27 communities throughout the Southeastern United States. “We are very excited to have been able to execute this acquisition. We have been looking to break back into the Georgia market for some time and we really felt this was the best opportunity to make it happen” said Founder and CEO, Adam Hendry.

Alexander Kaushansky, Vice President, Originations at Arbor Realty Trust, Inc., helped arrange acquisition financing for the portfolio. “It was a pleasure assisting on this sizeable reentry into the Georgia market,” Kaushansky said. “Tzadik has a strong vision for the future of these properties, and Arbor was able to support that vision with customized bridge financing combining excellent loan terms, speed and certainty of execution.”

Closing at just over $36 million, this deal is their largest acquisition since 2016 when they acquired 1,244 units across Orlando and Daytona Beach. This expansion is a trend the company is looking to continue. “We felt that this deal fit in line with our 5 year strategy of acquiring assets in secondary and tertiary markets to get us to 100,000 units” said Chief Investment Officer, Alex Arguelles. Tzadik has become one of the fastest growing Management companies in the Southeast over the past several years.

Tzadik is a fast growing, innovative, and driven real estate and property management company based in Miami, Florida. Since its formation in 2007, Tzadik has managed over $700 million in apartment complexes and over 11,000 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.

 

See full article here:

https://www.cnbc.com/2018/04/12/globe-newswire-over-1000-off-market-units-bought-by-tzadik-management.html