Villa Hermosa

Michael Cherry and Michael Goldburg purchased their first property in 2011; a 40-unit apartment complex in Dania Beach, FL for $2,700,000.  The property was financed by $900,000 worth of equity shared by the partners and $1.8million loan from Banco Popular Community Bank.  The strategy was to maintain the nearly 75% section-8 tenant base with regular annual lease increases and continue to improve the interiors while raising market rents on the remaining units.  MCMG Management began managing the property directly in 2012.  By 2013 the property had improved dramatically, showing annual NOI improvement from purchase date of $185,000 to over $225,000 (a 20% increase) – the sponsors orchestrated a refinancing of the property with new, non-recourse debt provided by New York Community Bank and offering almost 80% return of equity to the principals through a cash-out on the refinancing.

The property continued to improve and was marketed and sold for just under $4million in 2015.