Intelligent and Trustworthy Real Estate Investing.
Intelligent and Trustworthy Real Estate Investing.
VALUE-ADD INVESTMENT
The Westchase Portfolio features 50% first generation, unrenovated units. The other 50% of the units have only had partial, minor updates. This essentially leaves our new ownership group a blank canvas to implement a comprehensive interior renovation program.
The submarket has illustrated a preference for more modern interiors than what the properties are currently offering and a willingness to pay higher rents. Competing communities are implementing renovation programs consisting of stainless steel appliances, upgraded countertops, new cabinet fronts, modern lighting packages, and tile backsplash to achieve premiums.
In-place average rents for the portfolio are approximately $200 below neighboring properties, a clear indication of the demand in this submarket. A comprehensive interior renovation and marketing program aimed at pushing rents to market levels will yield a significant annual increase.
INCREASE REVENUE
The four properties have high occupancy in the mid-90%. In addition to the rent premiums we will achieve from the interior and exterior upgrades, there are additional opportunities to increase rental income. By implementing covered/reserved parking, washers & dryers and private backyards, we will be able to further increase NOI.
LOW RATE & PREPAYMENT DEBT
We are placing new low-rate bridge debt on the property with up to five years of interest-only payments. While the rate is floating, we will purchase a 1% rate cap to protect against unforeseen increase. The loan has no prepayment penalty, giving us freedom for an early exit.
EXIT STRATEGY
We will seek a disposition in approximately 5 years or sooner. Targeted goal of disposition is an investor ROI of 100%. We will acquire each of the four properties in its own entity, allowing us to the flexibility to sell the properties individually should that prove to be a more lucrative option.
We are actively looking for interested investors. You may qualify to invest with us as either an accredited or sophisticated investor according to SEC guidelines. Click the “Start Investing” button below to fill out our investor form and find out if you qualify to join our multifamily investment team.