In a noteworthy off-market transaction, a multi-family portfolio in Augusta that was previously sold for $5.75 million in 2020, has recently changed hands for an impressive $13 million. This sale has attracted attention as it highlights the potential of the properties and the increasing value they hold in a strengthening market.
The buyer of the portfolio, consisting of 219 units across 48 buildings and four vacant lots, is Door Fund Inc., an entity that specializes in real estate investments. They acquired the properties from Capital Properties LLC, with Brandon Mitchell from Malone Commercial Brokers representing the seller and Tyler Hall from Keller Williams Realty representing the buyer. The deal was successfully closed on June 9.
Capital Properties LLC, led by Aaron Walker, was the seller in this transaction. Walker's investor partnership had initially acquired the majority of the portfolio, consisting of 204 units across 44 buildings, from a Maine investor who had painstakingly assembled the properties over a span of 30 years. Under Walker's ownership, improvement projects were undertaken to enhance the value of the properties. Brandon Mitchell had also represented Walker in the previous deal.
The properties are conveniently located within a half-mile radius of each other, primarily on Northern Avenue, Washington Street, Mt. Vernon Avenue, Bridge Street, Green Street, and Chapel Street. These buildings boast an average age of 100 years and vary in size from one to eleven units, with a significant portion consisting of three, four, or five units.
Walker believed that the timing was right to sell the portfolio, as he typically aims to recoup equity within three to five years of acquiring properties. He acknowledged the contributions of Brandon Mitchell and Eleanor L. Dominguez from Ainsworth, Thelin & Raftice, his legal counsel, in facilitating the deal.
On the buyer's side, Tyler Hall, one of the partners involved, initially expressed interest in purchasing 77 units from Walker. However, during their conversation, Hall discovered that Walker owned a total of 219 units in the area. Realizing the potential of the entire portfolio, Hall decided to pursue the entire package, leading to an organic agreement between the two parties.
Hall personally put the deal under contract and then worked with Door Fund Inc., a Massachusetts-based firm led by his friend Michael Marchetti, to structure the remaining aspects of the transaction. They formed a syndicate of approximately 14 investors, including Hall and Marchetti, who collectively supported the deal. Hall and Marchetti, as the largest shareholders, will oversee the day-to-day operations of the portfolio.
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