WestBrook96InvestmentSummary
The document is a preliminary investment memorandum for West Brook 96, LLC, a 96‑unit, two‑story garden‑style apartment complex in Macon, Georgia. Acquired in 2019 below market value, the property currently sits at 68% occupancy due to prior mismanagement. The sponsor proposes a turnaround plan involving renovation of 30‑35 units, exterior upgrades, new signage, lighting, landscaping, and rigorous marketing and collection practices, aiming for 90%+ occupancy within 6‑12 months and full stabilization in 12‑15 months. Financially, the total acquisition cost is $4.94 million, funded by $3.84 million debt and $1.10 million equity. Stabilized NOI is projected at $400,375, implying a market value of $6.16 million at a 6.5% cap rate and creating roughly $1.2 million of equity. The offering seeks $1.1 million of equity, priced at $100,000 per unit for 11 units, each conferring a 1.5% membership interest and a 10% preferred return. An example scenario shows a $200,000 investment (two units) could generate $66,000 total return over 18 months, equating to a 22% annualized return, with the plan to sell or refinance after stabilization.
Topics
Property Overview and Current Condition
Details the physical attributes, location, age, unit mix, acreage, and current occupancy of the 96‑unit apartment building.
Operational Challenges and Mismanagement History
Explains the prior mismanagement that led to low occupancy and collection rates, and the recent shift to professional management in 2021.
Turnaround Strategy and Capital Improvements
Outlines the asset‑management plan: unit renovations, exterior painting, new signage, lighting, landscaping, and aggressive marketing with strict screening/collection procedures to achieve 90%+ occupancy.
Financial Structure, Projections, and Equity Creation
Presents acquisition cost breakdown, debt and equity financing, projected stabilized NOI, cap‑rate valuation, and the resulting $1.2 million equity uplift.
Investment Terms, Unit Pricing, and Expected Returns
Details the equity offering ($1.1 million), unit price ($100k), membership interest (1.5% per unit), preferred return (10%), and an example 18‑month return scenario yielding a 22% annualized return.