Discounted off-market acquisition of a large multifamily property with distressed ownership.
Opportunity
The Grove was a stabilized 340-unit apartment community in Liverpool, New York that was acquired off-market in November 2019 at a uniquely undervalued basis ($24.1MM) as a result of the seller being federally indicted for alleged fraud at other properties in their portfolio and needing to quickly sell off their assets.
Strategy & Action Steps
The deal was sourced through an investor relationship and negotiated on an expedited timeline due to the seller’s legal issues. Corridor quickly took action on an intensive due diligence process to ensure the asset’s reported financial performance was reliable and accurate.
Plans were made to perform targeted unit renovations, cure deferred maintenance, and rebrand the property.
Corridor renovated approximately 20% of the units over an 18-month period while maintaining average occupancy of 95%.
Outcomes
The Grove was listed for sale with a prominent tri-state area broker, and ultimately closed in October 2021 at a sale price of $40.5MM, representing an IRR of 62% and an equity multiple of 2.45x.
