On March 20, the newly founded Blackfin multifamily investment firm closed on its first multifamily acquisition, Quarterfield Crossing, a 203-unit, garden-style community in Glen Burnie, Md.
The 1970s-vintage asset was acquired off-market and is currently 75% occupied. Doug Root, who founded Blackfin with former Kettler president Andrew Buchanan in August 2016, remarks that the previous owner, a private local family owner–operator, “lacked the infrastructure” to run the property at the expected market level.
“This is exactly the type of opportunity that we set out to find with our new platform,” said Root, a former managing director of investments for Greystar Investment Group, in a statement. “There is a tremendous opportunity to overhaul the operations, upgrade the physical asset, rebrand, and really turn around the entire property.”
The Blackfin team plans to invest $6 million in asset improvement and performance, starting with immediate maintenance concerns deferred by the previous owner. Unit-interior upgrades and common-area improvements are also in the works, as are a new leasing office, a full-service amenity area, and a new, institutional-quality property management team.
When these improvements are complete, Blackfin aims to provide residents a “safe and vibrant home” in the growing Baltimore metro market. “Deals like this are really hard to come by, so we're excited that we can launch our platform with something that has this much opportunity,” says Buchanan. “Now, the real work starts, as we'll be rolling up our sleeves to execute our strategy, and there will be a lot of changes implemented at the property.”
As of March, the firm has also hired its first new employee, Kyle Hetherington, a former member of Root’s team at Greystar. Hetherington will serve as Blackfin’s senior associate, a role in which he'll support the firm's acquisitions and asset- management activity.
During his time at Greystar, Hetherington assisted in the acquisition of nearly $400 million in multifamily assets and supported the company’s disposition, financing, and asset-management activity. He also worked on the Asia Buyout investment team and in the Fund Management group at The Carlyle Group, prior to joining Greystar.
In December 2016, Buchanan and Root told Multifamily Executive that Blackfin had two multifamily asset deals secured, with plans to close on them in early 2017. The team also had plans to add an analyst, a construction manager, and an accountant in the coming year.
