Case Studies

Paramount

Opportunity:

  • Property purchased in August 2014 as Denver was experiencing accelerated rent growth with job creation outstripping the market’s ability to meet housing demand.

  • Limited capital investment at the asset created strong potential to improve the resident experience including enhancements to the building exterior, property branding, apartment unit interiors, leasing office, gym, and pool area.

  • The recent development of Colorado’s largest Whole Foods Market within close proximity to the property added to the belief that an asset repositioning strategy would be supported with strong interest from both renters and our eventual take-out buyer.
  • Large traffic counts and a “hard-corner” location offered excellent visibility for improving the property’s drive-by.  

  • Property had poor online presence with predominately negative resident reviews. 

  • Legacy water and electric systems were inefficient and contributing to unnecessary expense in common area billing as well as high resident utility bills. 

Execution:

  • Virtú completed a $2,300,000 ($19,000/unit) renovation as part of a value-add strategy to transform the building’s units, exterior and common area amenities. 
  • Unit renovations were completed with upgrade packages including vinyl wood flooring, new energy efficient light kits, low flow plumbing fixtures, programmable thermostats, new window treatments and doors, two-tone paint and Energy Star rated appliances.  
  • Extensive improvements were also made to the property’s building exterior and common area amenities including a new contemporary exterior paint scheme and entrance, new tension wire balconies, a modernized clubhouse, as well updates to the properties indoor pool and resident lounge.
  • Building renamed The Paramount (formerly Remington Place Apartments). New online marketing strategy also launched with mobile-friendly website.

  • All exterior and common area improvements as well as 50 of 115 planned unit renovations were completed in the first 18 months of ownership. 

Result:

  • The property is achieving outsized pricing power as a result of the solid Denver rental market and strong product/market match.
  • Q1 2016 rents on new leases (21 months after purchase of property) averaged $317/monthly premiums or 35% higher than the average rent rate on purchase.
  • Staff members reversed negative online reviews, achieving an 88% recommended score on apartmentratings.com (the most highly trafficked apartment review website) verses city average of 55%.
  • The speed of the property renovation and corresponding improvement in rent rates is expected to result in a total return that is expected to meet or exceed our pro forma on purchase.

View Renovation Photos