Our Favorite Before & After’s Part II

November 21, 2022

The Capital Stack

Our Favorite Before & After’s

Pinehurst Apartments of Linden

  • Old Rent $625
  • New Rent $950
  • Cost to get there $9,000
  • After our renovations are complete these units leased drastically faster even with a $325 premium. 

Pinehurst Apartments of Linden (Barn)

  • Old rent $0
  • New rent $800
  • Cost to get there $10,000
  • The barn at Pinehurst sat with the previous owner’s junk and random maintenance supplies from 1990s to now. We rented it for $800 a month which increased the property’s value by almost $150,000. 

Suburban 36

  • Old Rent $1,090
  • New Rent $1,500
  • Cost to get there $8,000
  • At Suburban 36 we can achieve rent increases of $410 dollars with lighter than typical unit turns. In this unit we did new flooring, paint, counters, and fixtures. As typical with our properties, the prior owner had underpriced the unit by quite a bit. 

Suburban 36 Exterior

  • Suburban 36 exteriors are well kept. However, we did install new signage at each property with a fresh name. Previous name is from two owners ago who went bankrupt. (Photos of Plymouth’s sign to come).

Major Market News


16-Property Midwest Portfolio
According to an article by TheRealDeal a Twin Cities Developer purchased a 16-property portfolio for $249 Million. The article explains that the portfolio was appealing to the buyers because of the properties Class A locations. According to the article this purchase is “the second-largest real estate purchase this year in the Minneapolis and St. Paul Metropolitan area”

Check out the article here: https://therealdeal.com/2022/11/13/capital-partners-buys-16-property-portfolio-for-249m/

Tips and Tricks

Tips
Turn units as fast as possible- We try to turn units in 10 to 30 days depending on the type of turn we are doing and the condition of the unit. We have implemented what we called “pre-move out walk throughs.” As soon as the resident turns in their 30-day notice we ask for access to the unit. This allows us to address the condition of the unit and get contractors and services on the schedule as soon as possible. Since implementing this strategy, we have noticed quicker and more efficient unit turns. 

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