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45 Units
$5,000,000
April 2021 - June 2022
BACKGROUND
Greentree Apartments is a multifamily property located in Quakertown, PA. It consists of 45 units in four separate neighboring buildings, strategically positioned at a corner location along Route 313, just a block from the intersection of Route 309 and Route 313. The complex features a unit mix with a high percentage of larger units, as 91% of the apartments are either 2- or 3-bedroom units with 1.5 bathrooms, making it appealing to families and long-term tenants.
At the onset of the project, the apartments were rented below market value, with rental rates between $200-$400 less than the local comparable apartments. The property was well-maintained but lacked modern amenities, and opportunities existed to both raise rents and reduce operational expenses.
BUSINESS PLAN
▪ Increase rental income by bringing rents up to market level through targeted upgrades.
▪ Improve tenant experience by upgrading common areas and enhancing the overall appeal of the buildings.
▪ Implement operational efficiencies to reduce expenses and maximize net operating income (NOI).
▪ Position the property for a refinance based on improved cash flow and increased property value.
CONCLUSION
The Greentree Apartments repositioning demonstrates the effectiveness of targeted upgrades and operational efficiencies in achieving rental growth and increasing asset value. By identifying key opportunities to enhance both the tenant experience and property income, the project delivered strong financial returns for investors and secured a long-term competitive advantage in the local rental market.
Initial Equity
Gross Proceeds
IRR
Multiple
84 Units, 2 Communities
$7,800,000
September 2019 - December 2020
BACKGROUND
The Maple House Apartments is a multifamily property located in Norristown, PA. Prior to the value-add initiative, the property was underperforming compared to its potential, with rents 16-20% below market rates and a need for strategic upgrades. Despite its prime location in a desirable suburban area, the property had not been fully capitalized to match market demand for modern, upgraded apartment units.
The initial condition presented an opportunity for repositioning the asset to increase rental income, reduce vacancies, and improve overall tenant satisfaction by making targeted renovations and operational improvements.
BUSINESS PLAN
▪ Increase rental income by aligning rents with the local market.
▪ Upgrade interior and exterior features to appeal to prospective tenants.
▪ Reduce vacancy rates through improved property management and tenant retention strategies.
▪ Optimize operating expenses and improve property efficiency to enhance NOI (Net Operating Income).
▪ Prepare the property for a future capital event, such as a refinance or sale, based on increased value and improved financial performance.
CONCLUSION
The value-add strategy for The Maple House Apartments successfully repositioned the property, aligning it with market demands and increasing its financial performance. The combination of targeted renovations, operational efficiency improvements, and a proactive management approach resulted in significant rental growth, occupancy stability, and increased asset value. This project highlights the importance of executing a comprehensive value-add plan to achieve strong investment returns and long-term property stability.
Initial Equity
Gross Proceeds
IRR
Multiple
Address
29 S. Trooper Road
Suite 100
Norristown, PA 19403
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