3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio, Invests in Booming Sioux Falls Market

3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio, Invests in Booming Sioux Falls Market

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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.

3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio, Invests in Booming Sioux Falls Market

3,100 Quaternary Units Recapped by Tzadik in Groundbreaking Two-State Portfolio, Invests in Booming Sioux Falls Market

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MIAMI, Oct. 15, 2018 (GLOBE NEWSWIRE) — 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.

DLP Capital Partners Completes One of Our Largest Equity Deals to Date

DLP Capital Partners Completes One of Our Largest Equity Deals to Date

DLP recently partnered with Tzadik Management on a Senior Equity Partnership that represents one of our largest equity deals to date, at over $36 million. Recently closed in early April, it is an acquisition of 6 apartment communities totaling 1,010 units located in College Park, Warner Robins, and Albany, Georgia. DLP provided 80% of the overall equity to make this purchase.

Tzadik Management, an asset management and real estate developer, is based out of southern Florida. Larry Hickernell, Investor Success Manager at DLP Capital Partners, commented, “We have a good synergy with Tzadik. We analyze and perform due diligence on acquisitions very similarly as well as a mutual interest in the same types of properties and overall strategy of investing in value-added B & C class communities in secondary and tertiary markets.”

Hickernell continued, “Investing in this acquisition as the Senior Preferred Equity partner gives us the opportunity to increase consistency in our returns to investors and decrease risk. This strategy is a big part of DLP’s direction forward and the focus of DLP’s newest fund, the DLP Preferred Returns Equity Fund that will be offered late April to mid-May.”

 

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DLP Capital Partners Completes One of Our Largest Equity Deals to Date

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.”

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https://finance.yahoo.com/news/over-1-000-off-market-122102384.html

Eagle Apartments Portfolio Trades Hands in Central Florida

Eagle Apartments Portfolio Trades Hands in Central Florida

By: Justin Summer

Eagle Properties Management Company sold its six-property multifamily portfolio totaling 1,244 units across Central Florida to Tzadik Management for $63 million, or about $51,000 per unit.

“The Eagle Apartments Portfolio offering was a rare opportunity to acquire a critical mass of units within some of the fastest-growing rental markets in Florida,” says Michael Donaldson, a vice president investments in Marcus & Millichap’s Tampa office.

The six properties are all located within 30 minutes of each other within the Orlando MSA near Daytona Beach. At the time of sale, the portfolio’s occupancy averaged 94 percent, and included the following properties:

  • Millennium Eagle, 200 units at 4255 Barwood Dr. in Orlando;
  • Eagle Reserve, 344 units at 3997 Rosewood Way in Orlando;
  • Eagle Bay, 248 units at 1225 S. Beach St. in Daytona Beach;
  • Eagle Oaks, 232 units at 2050 S. Ridgewood Ave. in South Daytona;
  • Eagle Park, 120 units at 1049 Brentwood Dr. in Daytona Beach; and
  • Eagle Briar, 100 units at 200 Robert St. in New Smyrna Beach, FL.

“Now is an excellent time to have acquired a substantial stake in the multifamily markets of Orlando and greater Daytona Beach as more than $5 billion in new development is taking place in those metros,” noted Evan P. Kristol, senior vice president investments in Marcus & Millichap’s Fort Lauderdale office.

The buyer, a Miami-based private investor, will be able to increase revenue across the portfolio through stabilization, strategic renovations or improving management efficiencies, according to Kristol. Tzadik Management now owns more than 4,500 units across 30 apartment communities.

Michael Donaldson, Nicholas Meoli, Evan Kristol and Still Hunter III with Marcus & Millichap represented the seller, a family partnership based in Daytona Beach, and procured the buyer.

 

http://www.costar.com/News/Article/Eagle-Apartments-Portfolio-Trades-Hands-in-Central-Florida/184384

Miami firm makes big buy of apartments in Volusia

Miami firm makes big buy of apartments in Volusia

DAYTONA BEACH — The former owners of Lohman Funeral Homes recently sold four apartment complexes in east Volusia County as part of a larger sale that included two apartment properties in Orlando.

The Lohman family have used some of the proceeds from the $63 million they received from the sale to Miami-based Tzadik Management to acquire another apartment complex in Daytona Beach.

“We didn’t intend to sell. They weren’t on the market,” said Lowell Lohman, who owned the complexes with his wife, Nancy, and son, Ty. “We got a nice offer and agreed to sell.”

Tzadik Management is a company led by founder/president Adam M. Hendry that with the addition of the 1,244 units it acquired from the Lohmans now owns more than 4,500 apartment units throughout the state, said spokesman Tyler Thrift.

The acquisition, which closed Aug. 10, gives Tzadik Management its first apartment complexes in Volusia County, which may not be its last, Thrift said.

“We’re always on the lookout for new opportunities that fit our investment strategy,” he said.

The four Volusia County apartment communities sold to Tzadik have a combined total of 682 units and accounted for $35 million of the total acquisition amount.

The local properties were the Eagle Bay Apartments in Daytona Beach, Eagle Oaks Apartments in South Daytona, Eagle Park Apartments in Holly Hill and Eagle Briar Apartments in New Smyrna Beach.

All have been renamed. Eagle Bay is now Tzadik Bay Apartments, Eagle Oaks is now Tzadik Ridge Apartments, Eagle Park is now Tzadik Park Apartments and Eagle Briar is now Tzadik Rose Apartments.

“We’re doing rebranding and are planning to make several improvements to the property,” he said.

Tzadik is the Hebrew word for righteous and all-knowing, Thrift said.

The Lohman family recently paid $4.8 million to acquire Seabreeze Pointe Apartments, a 148-unit complex at 458 Brentwood Drive in Daytona Beach. The complex has been renamed Eagle Point.

“We are still in an acquisition mode,” Ty Lohman said.

The Lohmans owned the apartment properties they sold to Tzadik Management for three years. They purchased the properties from the proceeds the family received from the 2012 sale of their 12 funeral homes and cemeteries in the Volusia-Flagler area.

Victor Lohman, Lowell’s brother, was also one of the owners of Lohman Funeral Homes but chose to not go in with the rest of the family in investing in apartment properties.

http://www.news-journalonline.com/news/20160812/miami-firm-makes-big-buy-of-apartments-in-volusia