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MACC Case Studies

Identify | Invest | Capitalize

The Club Apartments

Asset Reposition & Upgrade

The Club Apartments was our first acquisition in the Triad area of North Carolina. The property is located in Lexington, NC an area that continues to offer global industry, low cost of living, and world-famous food. It is also situated among the larger urban areas of Greensboro/High Point/Winston Salem (Triad) and Charlotte.

Key Tactics

  • Tenant profile improvement
  • Lease audit and re-positioning
  • Interior & exterior renovations
  • Managed to target pro-forma

Hold Period: 48 Months (2011-2014)

 
Extensive underwriting prior to the acquisition projected high returns on the multifamily asset through a re-positioning strategy as well as capitalizing on its close proximity to job centers. Upon Acquisition of the cash flowing asset in 2011, the Transition Team of our property management firm, Capstone Multifamily Group, took over management of the Club Apartments. Our property transition team implemented significant upgrades to the property’s exteriors, resulting in a $12k reduction or operating expenses in turn, increasing cash flow to the balance sheet.

Asset Repostition & Transition

Olive Court Apartments

Oliver Court Apartments was our first acquisition in South Carolina. Our initial analysis of this asset allowed us to identify repositioning and transitioning strategies to deliver solid returns to investors. Oliver Court is located in a residential neighborhood setting and is conveniently located near schools, shopping, and major metropolitan areas such as Charlotte and Greenville.

Key Tactics

  • Standard property renovations
  • Improved tenant profile
  • Worked with local authorities to create safer environment
  • Constructed new community amenities

 

Hold Period: 72 Months (2010-2016)

 
Upon acquisition in 2011, our transition team constructed a brand new laundry facility & transformed a broken down swing set into a an inviting playground area that. In addition to offering more amenities, standard renovations such as roof replacements and full parking lot upgrades helped transition the property. Returns were staggered at the onset of property takeover due to the necessary repositioning tactics, including the implementation of a thorough tenant screening process and working with local authorities to reduce crime. Returns steadily increased closer to disposition and generated significant returns with the sale of the asset.

Past performance is no indication of future results!