case study:
St. Louis Portfolio
St. Louis, MO
1,447 Units | $127.3 Million Total Capitalization | Acquired 11/2012
Investment Thesis:
Market primed for renovated product. Assets were well located, but tired and suffering from deferred maintenance. Repair of deferred maintenance, upgrade of amenities, renovation of common areas and unit interiors will garner higher rents and improve rental demographic.
Plan:
$8.25 million renovation and rehabilitation plan across the portfolio using a tiered deluxe and premium renovation model.
Results:
During the first 17 months of ownership renovation plan implemented, with rehab of clubhouses, amenity upgrades and over 660 units upgraded. NOI was substantially increased from $8.08 million in 2013 to over $10.12 million in 2016. The September 2015 sale of Cedar Lakes, followed by the August 2016 sale of Cove West, Waterfront Crossing and Westchase yielded gross proceeds of $168.45 million and a 43 percent gross IRR.
