Locust & Motor Lofts - Q3 2022

On behalf of Infinity, we are pleased to share our first investor update for the Locust Motor Portfolio opportunity. We closed the portfolio acquisition on September 13th and have commenced executing the business plan.

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We successfully closed both acquisitions and have taken over the management of the properties.  

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Key updates are below:

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1. Property Management Integration: AHM Management has fully taken over property management and is integrating all tenants, utilities, and service contracts into the AHM Management platform.

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2. Unit Turns: As a result of AHM’s requirement that the seller stop leasing at the property per the terms of the purchase and sale agreement, we are excited to announce that 74 units will be vacant as of October 1, 2022.  This is a better start to the project renovation than we had expected.

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• Locust Street Lofts: 48 (50.5%) of Locust Street Lofts’ 95 units will be vacant as of October 1, 2022, and another 24 (25.3%) units will be vacant by December 1, 2022.  72 (76%) units at Locust Street Lofts will be renovated and ready for lease by February 2023. 

• Motor Lofts: 26 (35%) of Motor Lofts 75 units will be vacant as of October 1, 2022, and another ten units will be vacant by December 1, 2022.  At least 37 (49%) units at Motor Lofts will be renovated and ready for lease by February 2023. 

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3. Motor Lofts Condo Buyouts: We’ve closed on purchasing four additional condo units at Motor Lofts to bring our total ownership to 60 (80%) of 75 total condo units.  We’re in active discussions with two additional owners to acquire their condo units and expect to close those purchases in October. 

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4. Motor Lofts Condo Association: We’re calling the special meeting for the condo owner’s association next week and will replace the board in October.  Once we occupy all three board seats, we’ll present the new association budget and a special assessment to cure deferred maintenance (roof replacement, gutter repair, parking lot resurfacing, etc., which we expect will prompt additional condo owners to sell.

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5. Locust Street Lofts Reposition Commencement: AHM constructors have submitted the appropriate documentation to pull construction permits to commence repositioning the ground floor of Locust Lofts and the first group of apartment unit renovations.  Selective demolition has already commenced.

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We have hit the ground running in the first 30 days.