Landry Place Apartments
- Excellent opportunity to purchase a 284-unit asset in the highly desirable Austin rental market for a price per unit that was below replacement cost.
- Virtú sourced the acquisition through a long standing relationship with the Austin brokerage community.
- The rents had not been maximized under the prior ownership due to poorly packaged and poorly advertised pricing, which had limited rent growth at the property, and left its rents below market.
- Virtú owned and operated a neighboring apartment complex, providing insight into the rental rates in the market as well as possible unit upgrades.
- Virtú completed a $1.38M renovation ($4,860/unit) as part of the value-add strategy.
- The renovation plan included all deferred maintenance on the building exteriors, roofs, and grounds.
- Management executed market-proven interior upgrades including the replacement of carpets with faux-wood flooring and the installation of new kitchen cabinet faces. Improvements to the fitness room and common areas were also made.
- In addition to expense reduction, Virtu grew monthly revenue 25% over two years going from $191,411 at purchase to $238,724 at sale.
- Purchased in May 2011 and sold in June 2013, the investment returned an IRR of 35% (net to investors) and equity multiple of 1.87x.
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