Sealed Bid Offering – Significant Upside Potential through Foreclosure
Send Sealed Bids To: Michael Foster, mfoster@tranzon.com or 16 Warren Avenue, Kenmore, NY 14217
Lakewood Pointe presents a rare opportunity to acquire the note and mortgage secured by a 442-unit garden-style multi-family complex located at 7001 Martin Drive in New Orleans, Louisiana. This offering includes the bank's foreclosure interest and a final judgment in place, with a pending U.S. Marshal's Sale, creating a clear and direct legal pathway to ownership for the successful note purchaser. With existing cash flow, substantial physical asset value, and legal instruments supporting acquisition through foreclosure, this is a compelling value-add investment opportunity in a major Southeast market.
Property Overview
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Property Type: Garden-style multi-family apartment complex
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Address: 7001 Martin Drive, New Orleans, LA 70126
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Land Area: 18.81+/- usable acres (30.87+/- gross acres)
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Buildings: 20 two-story residential buildings + clubhouse/office
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Gross Building Area: 456,838+/- SF
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Net Rentable Area: 450,685+/- SF
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Total Units: 442
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Year Built: 1975
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Average Unit Size: ~1,020 SF
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Zoning: S-RM2 - Suburban Multi-Family Residential
Operational Highlights
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Current Occupancy: 41.6%
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Leasable Units: 331 (111 units offline)
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Occupied Units: 184 (55.6% of leasable)
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Deferred Maintenance: 111 units range from shell condition to those with mold/mildew damage
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Estimated Cure Cost: $12,000/unit
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Overall Condition: Fair; expected to be average upon completion of repairs
Investment and Market Data
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"As Is" Appraised Value (Dec. 2024): $15,700,000
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Stabilized Value (Projected Dec. 2029): $20,400,000
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Effective Gross Income (Pro Forma): ~$3.97M annually
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As Current NOI (Pro Forma): ~$1.53M
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Cap Rate at Stabilization: 7.5%
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Estimated Lease-Up Period: 48 months
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Submarket Conditions: Rents have grown modestly (~5% over 18 months), while occupancy has declined, indicating a need for repositioning
Foreclosure and Legal Position
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Judgment Entered: $24.7M against borrower (Lakewood Pointe Apts LLC)
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Writ of Execution Issued: U.S. Marshal authorized to seize and sell the property
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Marshal’s Sale Date: Pending; buyer may credit-bid up to the judgment amount
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Collateral: Includes all real estate, improvements, leases, rents, and personal property