Repositioning Case Study #1
Tracy Apartments
West Valley City, UT
| Property | |
|---|---|
| Vintage | 1972 |
| Units | 60 |
| Date of Acquisition | 10/1/06 |
| Date of Sale | Not Sold, but refinanced |
| Valuation | |
|---|---|
| Purchase Price | Undisclosed |
| Sale Price | N/A |
| Projected IRR | 18% |
| Actual IRR | Original equity fully paid; cash flow ongoing |
Conditions at commencement of SCI management:
- 93% occupied
- Average Rent: $500/month
- Acquired from Owner of 10 years + for an undisclosed sum
- Annual NOI of $197,000
Redevelopment Plan:
- $300,000 ($5,000/unit) renovation budget
- Replaced swamp cooler system with window units
- Renovated interiors of all 60 units
- New landscaping, new signs, new playground
Results:
- Increased occupancy to 95%+
- Increased Average Rents to $658/month and NOI to $255,000
- Increased “Other Income” from $0 to $100/per unit/month with RUBS
- Implemented strict tenant screening with criminal and credit check
View Other Case Studies:
Repositioning Case Study #1 - Tracy ApartmentsRepositioning Case Study #2 - Buena Vista Apartments
Repositioning Case Study #3 (In transition) - Aspenwood Apartments
Repositioning Case Study #4 (In transition) - Holladay on 9th
Repositioning Case Study #6 - Mulberry Park Apartments
Repositioning Case Study #5 - Lookout Pointe Apartments
Repositioning Case Study #7 - Liberty Heights Apartments
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