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The Reserve at Millcreek

Address1717 Kuntz Rd, Erie, PA 16509

DateAcquisition Date: 8/12/2017

705 Units

Project Highlights

This property was the epitome of distressed real estate investing. The initial groundwork for this property’s trials and tribulations was laid in 2007 when the previous owner cashed out 100% of its equity with a CMBS loan. Fast forward 9 years and the deferred maintenance was out of control, the occupancy dipped below 80%, and payment default ensued. We purchased the defaulted mortgage in March of 2017 in partnership with an Institutional-quality Family Office, with the expectation of taking back the real estate. The foreclosure was completed by August of 2017 and we took over operations from the receiver October 1st 2017. Since then we have been on a slow and steady climb upward in terms of occupancy, revenue, and profitability. The property was recapitalized in early 2021 with our former partner achieving nearly a 28% deal-level IRR. Moving forward our partner is a High Net Worth Family Office.