A typical Work Horse Partners (WHP) property will have a substantial value add component and would include the following:
- Buildings built in the mid 1980s to 2015,
- Have “management upside” i.e., WHP management can add a $100/unit/month rent (not including market increases) in an “as is” physical condition
- A renovation/remodel option would add $250 to $600/unit/month
- Renovations costs from $10,000/unit to as high as $30,000/unit.
- WHP’s renovated apartments are not cosmetic; they are improved to compete with new properties and a hold time of 10 plus years.
- Prefer a hold time of five plus years
- Return on cost of 5.5% to 6%
- Generate an IRR of 15% to 20% depending on locations and demographics
- Cash flows from 5% to 10% plus.
- Return investors 30%--50% of original equity at refinance in years 3 to 7
- Multiple of 3X
- Focus on minimizing interest rate risk
Whenever an opportunity is put under a letter of intent (LOI) or a purchase and sale agreement (PSA) it will be posted to this website.
Equity Sources
Most of the equity for WHP’S multi-family properties come from friends and family, high net-worth individuals, mezzanine positions and institutions. Most all investors are return investors with some participating in as many as five WHP properties. WHP investments include “merchant build”, long term holds and everything in between. WHP welcomes new investors; they are invited to learn more by registering in the investor portal.
Sellers? WHP are Buyers.
Work Horse Partners LLC ( WHP) are seeking to purchase apartment properties that include the following criteria:
- Located along the Wasatch Front of Utah, Denver Metro area including Colorado Springs, St George, Utah, Las Vegas, Nevada, Boise Idaho, and Idaho Falls.
- Ground up developments
- Fifty units and larger
- Property ages to be 1980’s or newer, will look at older properties if seismic updated
- High priority to value-add potential
- High priority to adaptive reuse i.e. office or motel conversion to apartments
- Will look at all “B+” and “A” type neighborhoods; case by case at “C+” to “B” type neighborhoods