Multifamily Recapitalization Case Study
When Everything Old is New Again
“It takes 20 years to build a reputation and five minutes to ruin it.” - Warren Buffett
A few months ago, I reviewed a pitch deck for a multifamily deal. The deck was light on details, but I went through the business plan and the limited information provided. The deal was presented as a new acquisition—complete with a purchase price, new loan financing, and standard fees (including an acquisition fee, of course).
But something was nagging at me.
I checked county records, and sure enough, the same sponsor had purchased this property years ago. This wasn’t a new acquisition—it was a recapitalization disguised as one.
‼️ To be clear, there’s nothing inherently wrong with recapitalizations. GPs have plenty of legitimate reasons to recap a deal. But investors deserve full transparency. Recapitalizations should be disclosed—clearly and explicitly.
Which brings us to today’s case study. (At the end of the article I’ll show you how to look this information up yourself).
Before we dive in:
Accredited Insight is a unique newsletter: we are the only voice offering a perspective from the LP seat. We cover what we see and what we learned in private markets—drawing on insights from hundreds of deals and numerous conversations with sponsors, LPs, and service providers.
By becoming a paid subscriber, you will gain access to our database of over 30 case studies and articles on everything you need to know to become a better investor. If you are a GP, this is your window into the world of capital allocators. Click the button below and chose your preferred term:
Deal or No Deal?
Just a friendly reminder: this is for educational purposes only, not financial advice. Names, numbers, and details have been tweaked to keep the sponsor’s identity confidential.
