After property take over property management, reposition tenant profile and leases, renovate interiors and execute exterior upgrades to reduce and control utility expenses. Result was a $12k per month reduction in operating expenses that increased cash flow to target pro-forma numbers. Due to the continuous upgrades and reduction of turnover rate, rents were increased at contract renewal year after year.
After property takeover, major renovations were done on all units including new doors, windows, new wiring and some new roofs. Exterior features were changed to common area and introduced a more tenant friendly club house. Modernization of the property, as well as improved management processes, resulted in better cash flow, much lower turnover rate and increased overall value.
After property take over the income increased steadily due to the streamlined value add process as well as tenant transition. Due to a thorough screening process of tenants, MACC VP was able to reposition Oliver Court. The initial returns were staggered on the onset, steadily increasing closer to disposition. The most significant return was generated with the sale of the asset returning investors over 110% of their original capital.