Case Studies

The Eleven Hundred
Sacramento, California

Opportunity:

  • Property purchased in December 2014 as Sacramento, CA was setting up for surge in rental demand. The market had recently absorbed an oversupply of single family homes and was just beginning to see accelerated rent growth.
  • The housing collapse of the recession led to a limited number of new apartment units being added while a large number of former homeowners were transitioning into the rental pool.

  • Limited capital investment created strong potential at the asset to improve the resident experience including enhancements to the building exteriors, clubhouse, gym, and pool area.
  • Property had a poor online presence and predominately negative resident reviews.  

  • Original single-pane windows and large areas of turf over 24-acre site. Legacy water and electric systems were inefficient and contributing to unnecessary expense in common area expenses as well as high resident utility bills.   

Execution:

  • Virtú completed a $5,024,000 ($8,900/unit) renovation as part of a value-add strategy to improve units and common area amenities. 
  • Unit renovations were completed with tiered upgrade packages that included a combination of vinyl wood flooring, new energy efficient light kits, low flow plumbing fixtures, programmable thermostats, two-tone paint and Energy Star appliances.  
  • Extensive improvements were made to the property’s amenities, grounds and building exteriors, including 100% new dual pane windows, extensive xeriscaping and major updates to the gym, pool clubhouse.
  • 385 of 425 planned unit renovations were completed in first 15 months.

Result:

  • The property achieved excellent rental pricing power as result of skillful property improvements and a strong rental market..
  • Q1 2016 rents on new leases (15 months after purchase of property) averaged $293/monthly increases - 40% higher than at time of purchase and almost double the forecasted rent improvement in our original business plan.
  • Reversed negative online reviews, achieving an 80% recommended score on apartmentratings.com (the most highly trafficked apartment review website) up from 28% on purchase.
  • The speed of the property renovation and corresponding improvement in rent rates is expected to result in a total investment return that greatly exceeds our pro forma on purchase.

View Renovation Photos