Black Castle Developments to Acquire 50-Unit Apartment Complex
Black Castle Developments has entered into escrow $1 million to acquire a 50-unit apartment complex in Fresno, Calif.
The terms of the purchase and sale agreement were agreed upon between BCD and the bank that owns the property. BCD has made a $25,000 deposit into the escrow account at Placer Title.
The real estate firm focuses on purchasing non-performing notes and bank-owned, income-producing commercial properties.
Jeff Holroyd, CEO of Black Castle Developments, said the apartment complex’s real value is double the $1 million purchase price that the firm acquired the property for.
“BCD continues to embark on new commercial and residential acquisitions that can help alleviate and revitalize the troubled real estate market,” Holroyd said. “Our ability to identify properties and negotiate extremely favorable pricing positions BCD to create a windfall of opportunity for our shareholders.”
Holroyd said he anticipates at least a 20% annual rate of return on the most recent acquisition. He added that the firm also has an opportunity to close a minimum of 400 more units with the same profit potential at a 50% discount.