MBP Capital, Inc.

Investment Criteria

MBP Capital - Acquisition Criteria

MBP seeks to acquire B and C Class multifamily assets with 100 units or more. MBP has been involved with the ownership of approximately 5,000 units and has taken many properties full-cycle with a strong track record. MBP will acquire 100% ownership interest in the asset and will consider partnership and joint venture ownership structures. MBP has many financial resources to close deals including relationships with bank, bridge and agency lenders.

Property Type: Multifamily  
Target Markets:   Texas and Colorado 
Sub-Markets:     Dallas – Fort Worth, Austin, San Antonio, Denver, Colorado Springs
Property Size:     150 units or greater
Transaction Size:   $5-50 million
Equity Contribution:   $1,000,000 - $20,000,000 
Property Class:   A- to C-
Vintage:   1960-2010
Design Type:   All, with Garden Style Preferred
Debt:   New Debt, Assumption or All Cash
Ownership Type:   Outright, Partnership, Joint Venture
Transaction Type:   Unusual, Complicated and/or Difficult Transitions are Welcome
Brokers:   Brokers Protected

Investment Strategies

These assets tend to suffer from high vacancy, often have significant deferred maintenance and are in dire need of a capital infusion. The first 12-18 months usually involve a significant renovation and resident turn over with very little, if any, cash flow to distribute to the ownership group. These assets typically have an 18 to 36 month hold period before a significant capital appreciation is realized at sale or refinance. The typical renovation costs $6,000 to $10,000+ per unit.

These assets are typically well occupied at takeover but rent below market comparables and/or do not billback for utilities. There usually is room to increase the value of the property through curing deferred maintenance, improving common area amenities and upgrading the unit interiors. The typical renovation costs $3,000 - $7,500 per unit.

These assets have high occupancy at takeover, little deferred maintenance and typically rent close to the comparable properties. This type of investment offers strong initial cash flow to the ownership group with the opportunity to increase value further through light renovations and market appreciation. The typical renovation costs $1,500 - $3,500 per unit.

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