Property Specs
GreenLite understood the asset was receiving significantly lower rents than newly renovated properties within the submarket. Despite excellent location, the property was struggling due to outdated finishes, deferred maintenance and sub-optimal management. With the opportunity to acquire the asset at a low basis, the property was capable of benefiting from extensive capital improvements with minimal risk of over-improvement.
Project Background
Repositioning Timeline and Process
The asset underwent its reposition over a period of 19 months. Exterior/common areas were completed within 90 days of the takeover.
Repositioning Results
Interior renovations were initiated at lease expiration and completed within 21 calendar days. New leases achieved an average monthly premium of $225 NOI per unit.
Opportunity
GreenLite understood the asset was receiving significantly lower rents than comparable properties in the immediate submarket. The spread in rents provided the opportunity to acquire at a low price point and realize substantial returns through an aggressive approach to the physical and operational reposition of the asset.
Extensive Capital Improvements
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- Interior unit renovation across 129 units ($13,800/unit)
- Full demo and reinstallation of xeriscape landscaping, resulting in over $69,000 in city rebates
- Full renovation of the pool area, leasing office, clubhouse, and gym
- Increased community amenities to include a fire pit, dog park, and BBQ area
- New signage (2 monument signs. 1 building sign above office)
- Resurface parking lot
- New paint
- Addressed all deferred maintenance
Return on Investment
• Acquisition Price – $11,525,000 on 04/2018
• Disposition Price – $18,300,000 (03/2021)
• Total Return on Equity – 237%
• Equity IRR – 56.71%
• Equity Multiple – 3.37x
• 75% LTC (debt) + 15% LTC (preferred equity/mezzanine debt)
More On Our Investment Strategy
We take a defined strategic approach to each investment, focused on adding value in the right ways, in the right places at the right times.