Property Specs
GreenLite Holdings utilized its proven technique to identify and capitalize on an undervalued property located in the stable, well-performing market of Tucson, Arizona. This resulted in driving net operating income and property value over a brief holding period.
Project Background
Repositioning Timeline and Process
The asset underwent its repositioning over a period of 14 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 $183 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
- Interior unit renovation across 73 units ($9,500/unit), resulting in over $5,500 in city rebates
- Full demo and reinstallation of xeriscape landscaping
- Full renovation of the pool area, leasing office, gym, and sport court
- Increased community amenities to include a fire pit, dog park, and BBQ area
- New signage (1 monument sign. 1 building sign above office)
- Resurface parking lot
- New paint
- Addressed all deferred maintenance
Return on Investment
- Acquisition Price – $3,400,000 on 01/2018
- Disposition Price – $5,600,000
- Total Return on Equity – 136%
- Equity IRR – 17.55%
- Equity Multiple – 2.36x
- 75% LTC (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.