ACQUISITION STRATEGY

Purchase at a Steep Discount – Secured at ~ 40% of replacement value

Add Professional Management – Property developed, owned, and managed locally by non-real estate professionals with unsophisticated management practices

Construct Critical Property Amenity – Property originally developed as for-sale condos, lacked critical common area amenities including clubhouse and pool, and utilized rental units for leasing office, maintenance, etc.

Normalize Rents – Property significantly lacked market comparables in occupancy and rents

EXECUTION

Capital Improvements: Invest $500,000 for clubhouse and pool, adding a key amenity included at every comparable property. Further freed up four non-revenue units to add to NOI

On-site Management: Professional property management directed by aggressive ownership successfully converted all leases to market rent, increased occupancy, and eliminated bad debt

RESULTS

Clubhouse and Pool: Successfully constructed on time and at budget, adding key amenity and leasing effect, plus allowing all four non-revenue units (leasing office, managers unit, maintenance unit, model unit) to convert to revenue units

Increase NOI: Increased from $172,198 (T12) to $704,112 (Oct 2018 Income Statement annualized)

INVESTOR RETURNS

Returns NET of all fees.