Location. Winchester Commons is a 64 Unit, C class building in Huntsville, Alabama. The property is located just north of Alabama A&M University in a fast growing section of Huntsville (HSV), one of the nations most desirable cities for business and the home of NASA’s Marshall Space Center.

Description. Winchester Commons is comprised of 16 4–unit buildings (four–plexes) efficiently sighted in 4 building rows on four acres of land. While sold as a package, the property has multiple tax id numbers and may be broken down into several smaller parcels for maximum profitability at project end.

Purchase. The purchase price was $1,940,000 with $75,000 of the purchase price being applied directly to closing costs by the seller on our behalf making the purchase price effectively $1,865,000. Quantum Acquisitions purchased this property for under market value and will execute a minor repositioning strategy to increase revenues and disposition value from year 1 through year 5, when the property will be sold or refinanced.

Snapshot.

• Purchase Price: $1,940,000 (effectively $1,865,000)
• Units: 64
• Price Per Square Foot: $34.64 ($33.30 effectively)
• Financing: 1st Mortgage: $1,455,000, at 6.1%,
  Seller Second: $194,000 at 7% interest only 24 months
• Leverage: 75/25 LTV
• Investor Equity: $650,000
• Pro-Forma 5 Year IRR: 21% after disposition
• Investment Status: Returns paid to investors to date exceeded preferred return of 6%.