ACQUISITION DANVILLE
- Purchased (3) properties July 2022 by a single owner operator.
- Increased the average unit rate from $98.00 to $143.00 a month all while maintaining occupancy levels 90%+.
- The investment had deferred maintenance that included broken doors, some of the properties were not fenced properly or fenced at all. Upon acquisition our in‐house construction team was able to complete all the capex in under 7 months. This allowed on of the properties to go from 65% occupied to 93% occupied once completed.
- Upon purchase the properties were generating $56,634 a month in revenue and today the properties exceeds over $72,000 a month. Part of our management strategy is to manage towards revenue and not occupancy. We typically are very aggressive on rental rate increases on mom & pop deals since they tend to manage more towards occupancy
which provides the ability to quickly increase the revenue.
- Purchase Price: $8.5 Million
- Capex Budget: $485K
- Total Capitalization: $9.0 Million
- Strategy: Increase the value of the investment by implementing state of the art technology and put our SOP’s in place.
- Project Size: 99,290 NRSF / 676 Units
- Capital Partners: Friends/Family/Syndication
- Revenue Since Purchase: Up 25.5% (purchased July 2022)
- Occupancy: 92.6%
- Cur. Cash on Cash to LP’s: 10.02%
- Value Creation: ~$3.1M since purchase
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