A common question I get is “Chris, how can I invest with Terrance Doyle in one of his VareCo deals?” Now that I’m working with Lon and Ironton Capital, we’re able to bring you one of his deals!
Opportunity: Samuel Apartments
- VareCo just got a 34-unit apartment complex under contract. Ironton Capital secured a $1,000,000 allocation for accredited investors.
- Market: Denver metro area and a 15 minute drive from downtown.
- Size & Vintage: 34 Units (2 17 unit buildings), built in the 1970’s.
- Current Class C with planned renovations to Class B+.
- Business Plan: Improve interior units, exterior facade, and common areas with $930K budget to lift rents by 60% and force asset appreciation.
Why We Like This Deal:
- Seller has owned this property for 26 years, leaving it underperforming with in-place rents well below market. VareCo will target a 60% increase in rents post renovations.
- Completely off-market, essentially no pursuit competition
- Located 0.5 miles south of Midtown Plaza, which is a 41-unit project VareCo successfully exited in April 2022 (month 18 of a 36- month anticipated hold, at a price 36% higher than anticipated).
- Large open space between the two buildings allowing for amenity creation, similar to the pergola & common area which VareCo created at Midtown Plaza.
- Negotiated the seller down $250,000 during inspection objection, for an effective purchase price equal to $157,350 per unit. This is an attractive entry basis within the submarket.
- Samuel Apartments is a perfect fit for the ideal VareCo value-add business plan consisting of exterior and interior modernization, amenity enhancements, and operational improvements.
Offering Memorandum
We’re currently finalizing the offering memorandum in the next 48 hours to share all the details.
Next Steps:
- Submit your reservation request here.
- Receive and review the OM
- Funds are due by Oct ~5th
*This is a private Regulation D 506(C) investment for verified, accredited investors only.
Podcast: Play in new window | Download | Embed
