Founder & President - Chief Investment Strategist @ Carlson Alternative Investments | Founder & President - Principal Broker @ Realty Yield Inc. | Primary markets: Portland, OR (main office) + Major West Coast Cities
Realty Yield is pleased to announce a client's recent acquisition of a 10-unit multi-family property located in SE Portland. This transaction is a good illustration of deals that can still work even with stubbornly compressed capitalization rates and much higher borrowing costs. THE LOW INTEREST RATE OF 3.92% WITH 3 ½ YEARS REMAINING ON THE FIXED-TERM WAS THE KEY TO MAKING THIS DEAL WORK. Our client was completing a 1031 Exchange from a property he sold in Chicago. The deal specifics: · Final negotiated price, $2,155,000. · Capitalization rate on actuals - ~ 5.32% · Loan assumption, `$1.2 million · LTV ~ 55% · Cash-on-cash on actuals – 4.82% · Yield on actuals for client (after-tax cash flow + loan pay down) – 7.57% A WIN-WIN FOR BOTH THE SELLER & BUYER!
