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Case Studies

Single Family Purchase

Greeley Avenue

4 Bedroom/1 Bathroom

Purchased in 2009 for $252,600.00

Estimated Mortgage Payment $1571.71
(20% down with a rate of 5.5%)

Rents Year 1:
$1,400.00
Rents Year 3:
$1,575.00
Rents Year 5:
$2,000.00
Rents Year 10:
$2,600.00
Purchase Chart

Apartment Value Add

Lyndhurst Terrace

Acquisition Date:
6/24/2013
Acquisition Price:
$910,000.00
Per Unit Price:
$60,666.00
Disposition Date:
8/31/2015
Disposition Price:
$1,500,000.00
Per Unit Price:
$93,750.00
  • Obstacles

    • Ineffective onsite
    • Outdated Paperwork
    • Weak tenant base
    • Poor Screening
    • Low curb appeal
    • Poor reputation
    • Deferred maintenance
    • Widespread culture problems, no adherence to rules
    • Underutilized space
  • The Opportunity

    The property was poorly managed, residents were not following lease provisions which was driving away good tenants, there was a lot of deferred maintenance and the paperwork on file was unorganized, out of date and weak. This building could be repositioned from a class C building to a class B building by improving day to day operations and addressing deferred maintenance.
  • Strategy

    Start with implement new screening criteria, collect larger deposits and improve the look and feel of the common areas. Next we updated all paperwork and begin strict enforcement of the lease. Existing residents could either decide to comply with the new terms or move. These steps would improve the curb appeal and reputation of the building. This would then allow the owner to update units and increase rents.
apartment value

Reposition and Value Add - Multifamily

Pacific Court Apartments

Acquisition Date:
1/30/2015
Acquisition Price:
$1,900,000.00
Per Unit Price:
$67,857.00
Disposition Date:
6/5/2017
Disposition Price:
$3,265,000.00
Per Unit Price:
$116,607.00
Price Difference:
$1,365,000.00
  • Obstacles

    • Ineffective onsite
    • Instability in Management - 5 companies in 3 years.
    • Outdated Paperwork
    • Weak tenant base
    • Poor Screening
    • Low curb appeal
    • Poor reputation
    • Deferred maintenance
    • Design flaws
    • Unauthorized occupants
    • Widespread culture problems, no adherence to rules
  • The Opportunity

    The existing onsite manager was failing to do their job. They had forged relationships with many of the residents that blurred the lines between professional and friendship which limited their ability to be objective and fair. In several cases units had unauthorized occupants who were harassing their neighbors and were being destructive to the units they occupied. Deferred maintenance had piled up over the years to the point where roughly 20% of the units had mold problems. The property was situated off of a busy street and due to it’s layout encourage non-residents to walk through the common areas. This led to homeless people regularly breaking into the laundry area to sleep and using the common areas as their restroom.
  • Strategy

    Remove the existing onsite and retain a new one. Immediately remediate mold. Update paperwork with all residents to give management more leverage. Strictly enforce the lease and take steps to eviction any unauthorized occupants who are unwilling to volunteerly apply. Each building had two floors and as a result two floating staircases. Removing one staircase from each building would prevent non-residents from using the building premises as a shortcut and reduce trespassing. Implement a no pet policy and no smoking policy to reduce damage in units. As residents vacated or were evicted, units would be renovated and rents increased.
Pacific Court Apartments