Renaissance Portfolio

We identified undervalued assets that were institutionally owned but poorly managed with significant deferred maintenance and heavy lift value-add that detracted from their marketability and value. There were no institutional suitors; we were well positioned against competition from only a few other buyers and negotiated a very favorable price despite in-place rents that were well below market.

We spent more than $3.5mm on capex. More than half was prioritized for energy efficiency projects and deferred/preventative maintenance to improve property perception and long-term cost structure. The remainder was largely spent on unit renovations to generate both immediate and long-term upside. Through optimized turnover and renewal planning we generated significant rent increases from a combination of partial and full renovations. Additionally, we converted parking lot operation to one master lease to create a higher, predictable revenue stream and divert management resources to more productive tasks.

We intensively managed the property to optimize occupancy, collections and operating costs. Annual turnover was reduced to less than 20% from 40%+. Economic occupancy increased to 95%+ from approximately 85% and physical occupancy stabilized around 97% versus 90% when we acquired the property.