Daytona Beach Multifamily Property-Off Market Acquisition
Its Kristine Flook over here Urbanize PropertiesCommercial Real Estate in Florida
Steven Libman and I have the pleasure of hanging out today for a few minutes and talk about a recent transaction that we have the privilege to work together on Lake Forest is the name of the asset in Daytona Beach. Thank you, Steven, for spending some time with me this afternoon. Yeah of course.
Congratulations to you and your team for a monster project we got closed!
Yes, Janet Crucet and us are very glad we were able to work with you and your group to get this over the finish line. Let’s talk about how this kind of unfolded.
I know when we first connected which was probably about two years ago, we were sourcing some acquisitions for you. I think it was some land and mostly at
that time you were looking for self-storage. Yeah we were building about 380,000 square feet of self-storage and around the Orlando area so we are looking actively for new projects and things like that and looked at a couple of deals together never got one executed and we were newer in the space and we
did a couple of deals right but we did like $10-15M deals and so we sent a couple over underwrote a couple put a few LOI’s out but didn’t get anything done but yeah you just kept bringing us some deal flow and really appreciate us, you guys, keeping us in the loop as to like what was going on. Your brought us some multifamily deals to us too and you know we I think a lot of times you would bring us a deal while were raising capital for an existing project because we’ve done just about nine deals in just under three years so we have been hustling!
So have not had one that popped while we were raising capital and finding other deal flow until LAKE FOREST!!!
Yes, there we go we started that on in like October/November last year is when we started working on it………it’s taken some time. There were two deals that were on the table one of them had a little bit of time clock that needed a fast and Lake Forest did not have so much of a time clock that required……yeah so you were working on the other raise So, it was interesting because you sent this deal over to us and I recognized the name of the owner and I reached back out to you and I say “Hey I know these guys. I met Lloyd Jones up in Manhattan like eight
years ago and we ate some over priced eggs at the Harvard Club ” and I kept in touch with Chris but I didn’t know about this project right and I think it was probably because our paths hadn’t crossed on this level of deal before.
They’re working in the $40-100M space and we were in the like $5-15M space.
Anyway, we got back on the phone with them and we kind of very transparently told them where we were at with our equity and where we were at and looking to go. This deal was a little bit different. It wasn’t a straight acquisition. It was a recapitalization and the difference if you don’t know is that a recapitalization basically exchanges equity one equity group out for another. So the owner when he goes in and executes on a deal, puts his own money into the deal and then on a recap you take that owner out right and you can recapitalize them. And that gives a good opportunity for us because we have a real solid look at the financials. We know that they’ve owned it and operated it for 18 to 24 months and we can see the historic and we know where it’s going, we know
what the challenges have been and it really gives us a good opportunity to underwrite the deal differently than an acquisition without the 60 day timeline right this is a $12.2M equity raise on a $42M acquisition.
Our biggest equity raise to date was $4M so this was triple right and we committed to it but we were very transparent about the fact hey we don’t know how long its going to take us to bring this capital in and they said that’s okay we would like to work with you guys and they worked with us on this project
to little bit longer that we would have liked but it close we’re good to go.
The net operating income is increasing, the value of the property has increased by almost $8M since we went under contract on it. So that’s a huge win for us and our investors and you know kudos to you and your team for just staying in front of us bringing us deal flow that we were asking for and then even some one of opportunities like this that we didn’t ask for right? We weren’t saying “Hey Kristine bring us $50M deals” but you said hey I had this conversation this is interesting, this is why I think its interesting for you. We went and had the conversation and it turned out that that really open up a whole new path for our business and we will not be doing $10M deals anymore right. We are going to be sitting in that $40-75M space now. So it’s change the trajectory of our business and you guys were just consistent bringing deals. Ill be honest sometimes you’re alitlte bit
like “hey did you get my email, text me a bunch of times and Travis and I were buried in something else.”
Travis and I were looking at each other this lady is relentless and it turns out to be a fantastic quality because we knew that you weren’t giving up on us and you weren’t giving up these deals and we just had to really be clear about hey here’s the expected timeline when I can get back to you because we’re are buried in this thing and once all that happened communication was solid. Once we got under
contract it was like okay LET’S GO DO A DEAL!
Fantastic thank you for adding all of that we again Janet Crucet over here and we just really appreciate Urbanize Properties. We liked working with solid people like you and your team like you said with Travis and I know that Florida isn’t the only state that you’re looking at for properties. And I know we have touched bas on other states as well and so that’s great. A definitely looking forward to the future and I guess well be working on something before the end of the year. Hopefully before the end of 2021.
Yeah, still got a lot of runway left in the year. We just finished this deal and so we’re taking a couple of weeks to take a breather and then we’ll be back at it, underwriting new deals, and looking for new acquisitions and yeah, it’s a great have a partner in you guys knowing that you’re not just Florida specific. We’ve talked about deals in Ohio and talked about deals in Carolinas and Texas so its nice to have some partners that have a more national reach because not everybody does, right? Most people have their set geography and its good to know that you are finding a lot and all the deal flow that you guys brought us has been OFF MARKET which has been fantastic It’s a testament to you and your team and staying in front of the sellers and letting them know you have
real buyers that are looking to make offers and yeah we expect to make a few more hopefully by the end of the year!
Excellent! Anything else we should add to our to our listeners here to finish this off? No I think if you’re looking for a property right, if you’re looking to buy or sell make sure you’re reaching out to Urbanize Properties. We have done about $200M in acquisitions over the last 30 months or so and we’ve worked with the very big houses (broker companies) all the way down to very small houses.
But it all comes down to one thing right……WHO DO YOU KNOW LIKE AND TRUST Who is bringing you deal flow? Who can you work with? And Kristine and her team are fantastic so make sure you reach out to Urbanize Properties, Kristine and get on their list because their deals they go fast! Yes they do!
Thank you so much for mentioning that over here in South Florida. Big ole sunny day with a few palm trees and we just look forward to meeting with you and your team on the next opportunity!
Thanks for hanging out with us today for this quick moment here with
- Steven Libman Integrity Holdings
- Kristine Flook Urbanize Properties
- Have a fantastic day! Thanks Kristine