We take a mixed use property last updated two decades ago and invest $560K of capex funds to bring it up to modern standards including renovations of units, a vacant commercial space, major systems, and re-leasing units.
In the fourth quarter of 2020, the Del-Clara property was purchased for $1.1 million. The property, a mixed-use retail (5 units) and multifamily (8 units) featured a total space of 20,000 square feet, and had not undergone any renovations in two decades. The commercial tenants were operating on gross leases, with residential tenants at below-market rates and high vacancy. One commercial space was unoccupied and outdated. The roof, windows, HVAC, elevator controls, and fire panels were all in a state of disrepair. In addition, the existing laundry solution for residents was situated in the basement and contained outdated machines.
An execution plan with a $560K capex fund was established to address these issues. The residential plan involved enhancing the apartment units by bringing the finishes to a modern level including installing granite countertops and modifying units to accommodate an in-unit washer and dryer. A patio area was added, and the landscaping and parking lots were refinished to improve the property's appearance. Management operations were improved to bring a higher quality of resident experience. The commercial plan included converting the retail leases from Modified Gross to Net leases, extending the terms, build out the vacant commercial space to a higher finish level, and attract a high-quality commercial tenant to lease the space.
A 44-unit garden style with 1980s unit finishes and <25% below market rents. With $1.5M in capex, we renovated units to modern finishes, replaced major systems and roofs, built a new playground, & more.
An intensive $4.5M capex project transforming a 70 unit C+ mixed use distressed asset with significant issues into a 78 unit A- prized asset. Heavy renovations, conversion of commercial space into a residential lobby, and adding a suite of amenities.
An exciting $7.3M capex project: 103 unit renovations, 6 new units built inside a vacant commercial space, a suite of amenities including a new clubhouse build, a full marketing rebrand, and a management overhaul.