case study:

Metro Baltimore Portfolio

Baltimore, MD

450 Units | $ 51.7 Million Total Capitalization | Acquired 06/2014

Investment Thesis:

Varied property types in disparate locations acquired in a single portfolio made sum of the parts greater than the whole, when applying a distinct investment strategy to each community.

Plan:

Repair deferred maintenance at each site, with a focus on improvement capital at Beacon Pointe, including new roofs, siding, windows and HVAC units. Add fitness center and leasing center to Edgewood. Renovate units across portfolio to differing scopes, dependent on resident profile, as demand dictates. 

Results:

Beacon Pointe and Edgewood were significantly upgraded, including unit renovations, resulting in meaningful increases in rents, allowing for the addition of supplemental financing for those sites. Portfolio was later sold in various geographic components, to individual buyers, over a 18 month period, resulting in a gross IRR of 31 percent and a 2.4 equity multiple. 

Before

Before

After

After