Station Nine

THE FACTS: As of 12/31/2016

  • Number of homes: 126
  • Date of Acquisition: December 2012
  • Purchase Price: US $13.9 Million
  • Total Capitalization: US $17.8 Million
  • Appraised Value: US $27.6 Million
  • Market Rent: US $1,426/home

THE OPPORTUNITY: 

SUBSTANTIAL RENOVATION, INSIDE AND OUT

Given the deferred maintenance and poor aesthetics of the property upon acquisition, an extensive repositioning program was undertaken, with an additional $3.8 million invested in the property.

The repositioning included significant investments to improve the home interiors, exteriors of the buildings and landscape, redesigning the clubhouse amenities as well as the addition of a model home. The property was also rebranded as Station Nine to help establish a new and positive perception of the community.

Since acquiring the property in December 2012 monthly average rents have increased from US $903 per home to US $1,426 per home. As a result of the repositioning and improved performance metrics, management was able to refinance Station Nine in April 2014. The refinancing resulted in increased cash of US $3.2 million.

 

THE RESULTS: (% Change)

  • Market Rent: +71.2%
  • Total Revenue: +74.5%
  • Net Operating Income: +136.4%
  • Appraised Value vs Cost: +55.3%

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