I’m pleased to announce that we’ve now closed on our second property, a 96 unit complex with 12 buildings in Emporia, Kansas. Formerly married student housing for Emporia State University, we will be rehabbing and bringing this online to serve the whole Emporia community, both university students and locals. At only a few minutes walk from the university, of course we expect to have a sizable student population.
Since this was an auction of state property and not a traditional sale brokered on the commercial market, there were fewer eyes on it and as a result we were able to get it for an extremely competitive price per unit. Given the strict time frame, we were unable to close the construction loan at the same time as closing, so there will be a small delay between acquisition and the beginning of the renovation. Though the majority of the units themselves are in quite good condition, there will be a significant amount of infrastructure work necessary to get everything up to modern code, since it will no longer be grandfathered in with the shutdown and change of ownership. I spoke of this in the ESU inspection post a few months back. Even so, we expect to be all in for roughly half of what the projected stabilized value will be, so it’s overall a pretty good deal.