Latest / The OMC Real Estate Podcast
High Returns, Higher Risks: When a “Can’t-Miss” Deal Misses
In this episode of our High Returns, Higher Risks series, we break down the story of Alterra Apartments in Tucson—a 416-unit “can’t-miss” value-add deal that ultimately went into technical default and is now likely a full write-off for investors. We’ll unpack: How heavy leverage and $64M of senior debt left little protection for equity investors Why optimistic rent growth assumptions and renovation timelines unraveled in a softer Tucson market The impact of higher-for-longer interest rates on refinancing and operating costs Key lessons investors can apply to avoid similar traps This isn’t…
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