Northwood Place Apartment Complex


MEI Capital Partners took advantage of the dynamics of a “must sell seller” to capitalize on a value-add play in the Central Valley community of Modesto, California. The off market 54-unit garden style apartment complex needed to be closed within a 30-day window in order to take advantage of the $50k/unit pricing.  MEI raised $1.750M in equity backed by a $1M loan to close the transaction within the 30-day period. Thereafter, MEI embarked upon a unit remodel program that allowed ownership to increase rents by 25%.  Within 18 months a 11% cash on cash return was being realized.  The property was ultimately sold for $110,000/unit.  MEI and its partners ultimately realized an 18% IRR during the holding period with MTM cash flow representing a large portion of the return.