- The strategy for this investment was to take advantage of a previously under-managed asset in a strengthening student market that had limited new apartment developments.
- The student market was surging based on growing college and limited apartment stock additions.
- The property was purchased from a long-term owner that was focused on filling vacancies early in the student leasing cycle with less emphasis on rent rates.
- Virtu completed a $741,143 renovation ($4,721/unit) as part of the value-add strategy.
- The light unit renovation was executed with funds spent on deferred maintenance and various upgrades, including exterior improvements, vinyl wood flooring and sound insulation.
- Staff members also made significant progress in reversing negative online reviews, achieving a 92% recommended score on apartmentratings.com (the most highly trafficked apartment review website) as well as a four star rating on yelp.com.
- As the market surged in Davis, and the business reached maturity, we made the decision to use cash from operations to further renovate ten units with a premium level of finish. These units commanded a significantly higher rent, and allowed prospective buyers to assume an enhanced level of renovation could be successfully deployed across the property.
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