The Downtown @ Butler, NJ Case Study
Managed & Owned by Red Knight Properties
- Acquired 10 Units (1 retail 9 apartments) in the most visible and foot-trafficked area of historic downtown Butler, NJ from long-term private ownership and motivated seller
Purchase Price: $1,060,000. Capital Improvements: $25,000. All In-Cost: $1,085,000
- Successfully raised apartment rent average by ~15% with minimal capital improvements (<$25K) within 4 months upon acquisition and minimal turnover/vacancy
- Increased in-place net operating income upon purchase from ~$95,000 (~9% cap) to ~$117,000 (~11% cap/yield-to-cost) within a 6-month investment period
- Achieved cash-out refinance with new appraised value of $1,500,000 within a year post acquisition; returning approximately 100% of initial investor equity contributions
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