At acquisition, the property suffered from deferred maintenance, lack of market identity, poor credit quality of tenants, delinquency and economic vacancy.
- A new management office was placed in one of the street front vacant commercial spaces.
- New property, building and directional signage was added everywhere.
- Building exteriors received new entrance facades, exterior lighting and shutters.
- All interior stairways received new light fixtures and flooring.
- New landscape beds were added at the entrances.
- Electrical switch gear was replaced on 3 of the 6 buildings.
- Significant concrete and asphalt repairs and replacement were completed.
- New credit and rent collection standards were enforced.
- The largest building received a complete exterior renovation that included new siding, roof, soffit and facia board, gutters and paint.
- A property website was created with professional photographs, aerials images and 3d floor plans.
Within 18 months from acquisition and during the Covid crisis, the property’s rental income grew 55% from $670,000 at acquisition to $1.04MM at stabilization while NOI grew 49% from $422,000 to $630,000. Three of the expiring commercial tenants renewed at an average rent increase of 22% and the one vacant basement commercial was leased. Delinquency has remained below 0.25%. Upon stabilization and refinance the property returned 101% of investor capital. The property was refinanced with a long term balance sheet loan from a regional lender for a 10 year term.
- 101 Residential Units
- 7 Commercial Units
- Morgantown, WV
- Walking distance to WVU Ruby Memorial and Mon General Hospital
- Excellent location to many restaurants and retail in Morgantown
- Basketball Court, Grilling Area, and On Site Laundry