More conservative agency lenders would not finance this acquisition, so we turned to more aggressive CMBS lenders. We closed the purchase late in the afternoon on New Years Eve.  Reported occupancy declined to 82% during the closing process.

Within hours of closing, we began investing in physical and operational upgrades to stabilize the property. During our post closing inspection, we discovered the property was only 72% occupied.

Within months of closing, we experienced first of five resident-caused fires. Two of these five fires took entire buildings out of service for more than a year.

Despite these unwelcome surprises -- and the high costs to insure this property due to its fire loss history -- we continued with our $2 million upgrade program which involved installation of all new roofing property-wide, new foundation framing, new cantilevered balconies, new siding, new windows, new parking lots, and conversion of a derelict tennis court to pickleball. Interior upgrades included new stainless steel appliances, cabinets, countertops, fixtures, lighting, flooring and paint.

Within ten years, we doubled gross income and quadrupled NOI. Occupancy now routinely exceeds 95%. These results far exceeded our original business plan, in spite of the fires. Most important, our underwriting and due diligence ensured that no capital calls were needed to stabilize this property.

in 2023, we  refinanced the acquisition debt, and the proceeds were sufficient to return 100% of initial capital plus a multiple of 1.85x. All of these proceeds were tax deferred.

Since 2023, we have increased NOI by another 130%. This NOI increase will enable us to execute another cash out refinancing in the near term and return another multiple of capital to investors.