Chester - Case Study - Red Knight Properties

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Owned & Managed by Red Knight Properties

Acquired 10 Units (4 retail 6 apartments) in the most visible and foot-trafficked area of affluent downtown Chester, NJ from long-term private ownership and motivated seller
Purchase Price: $1,285,000. Capital Improvements: $25,000. All In-Cost: $1,310,000
Restructured short-term retail leases to long-term upon acquisition
Successfully raised apartment rent average from $875 to $1,425 (+~61.4%) with minimal capital improvements (<$20K) within 3 months upon acquisition and minimal turnover/vacancy
Leased vacant storefront unit within two (2) weeks upon acquisition. * Lease-up of this unit was not included in initial analysis *
Created an on-site laundry room to enhance amenity base while also adding an additional income stream
Increased in-place net operating income upon purchase from ~$95,000 (~7.5% cap) to ~$155,000 (~12% cap/yield-to-cost) within a 6-month investment period
Achieved cash-out refinance with new appraised value of $2,110,000 within a year post acquisition; returning over 140% of initial investor equity contributions