Case Studies2018-10-17T00:56:00+00:00

CASE STUDIES

Case Studies

Ashton Park Apartments
Politics and Profits, Focus on the End Game

Acquisition, property management, value-add, rehabilitation, reposition, disposition

  • Ashton Park Apartments
  • 240 Units – Class B Apartments
  • Texas City, Texas
  • Built in 1975
  • Advised purchase in 2008 to private investment group at $26,875 per unit
  • Repositioned asset and resident profile over 18 month time period
  • Provided regular cash distributions to investors
  • Relieved as manager in 2014 to appease activist investors after significant tax increases required suspension of distributions. Continued to advise managing partner
  • Rehired 12 months later after acting management allowed occupancy dip to 65% and payables to increase $200K+
  • Arranged funding for recovery efforts
  • Guided $781K of interior and exterior renovations in 2016
  • Increased effective rents 65% over 10 years – ultimately, 18% higher than the submarket
  • Positioned for sale. Sold 2016 for $42,000 per unit. Cap rate: 7.00%

Ashton Park Apartments

The Claridge Apartments
The Art of Hidden Value and Million Dollar Water

Property management, process analysis and improvement, bridge loan financing, rehabilitation, value-add, business development, reposition and disposition

  • Claridge Apartments
  • Houston, Texas
  • 173 Units – Built in 1983
  • In 2007 the City of Houston was contemplating condemnation and the property was foreclosed.
    • 230 code violations
    • 30% of the property out of service due to flood damage
    • Rents were deeply discounted, and new residents were required to do their own make-ready.
  • Terri Clifton was engaged to clear up liens, citations and other liabilities to position the property for sale. This was accomplished over 24 month period with minimal additional investment.
  • Terri Clifton identified and pitched the deal to a private investment group.
  • Given the history of the property, investors had reservations. Identifying the hidden asset value, Terri confidently offered funding and assumed a percentage of ownership interest.
  • Acquisition was completed in September of 2009 for $3,924,851 ($22,687 per unit).
  • An additional $2.3 million was invested to rehabilitate the entire property.
  • Reuven Bisk arranged bridge loan financing.
  • The property was brought back to life over the next three years.
    • Completed extensive processes review
    • Identified extensive water usage
    • Implemented RUBS (Ratio Utility Billing System)
    • Detected and repaired leaks. Installed water conservation devices reducing water costs by 30%.
    • Water use was still extensive
    • Persisted with investigations
    • Properly maintained systems and with persistent management, convinced the City that metering was faulty. After meter change in January of 2014, water billing went down by another 43% to an average of $6,199 per month.
    • Improved water management (savings + RUBS) added $163,356/year in NOI.
    • Increased occupancy to 97%
    • Increased rents by 14%
    • Initiated regular monthly distributions
    • Sold in April of 2015 for $9,149,970 ($52,890 per unit) Cap rate: 9.64% for a 47% gain.
    • These hands-on, management-directed changes added $1,694,564 to the value of the property, or $9,795 per door
    • The property continues to provide healthy returns for current owners and is now upgraded to a B+ asset.

The Claridge Apartments

Eagle Heights Apartments
From the Ground Up, An Original Concept

New development, construction management, financing, new construction lease-up,

  • Eagle Heights Apartments
  • New Development Class A
  • Pleasanton, Texas
  • 98 units opened in 2016
  • Greenfield Development
  • Privately financed
  • Custom architecture
    • Interior hallways
    • Two bedroom units able to be subdivided
    • Electronic lock system
    • Texas shaped swimming pool
    • Private Wi-Fi in each unit
  • Tiered Services Apartment Concept
    • 3-Level Service Option Available – standard apartments to fully furnished with concierge-level service
    • Cable and internet service provided with gigabit speed included
    • Oversize parking with vehicle wash station
  • Grand Opening gala included a live bald eagle

Eagle Heights Apartments