Property Case Studies

Chelsea Park in Taylor, MI

Chelsea Park (Taylor, MI)

Property Description:

160 Unit, Class B apartment community
 

Acquisition Details:

Due to a known environmental condition on the property making us unable to acquire traditional financing, we organized a group of key investors to provide an internal bridge loan while we completed mitigation of the property. Closing occurred on June 15, 2011.

Refinance

  • Increased occupancy from 92% at takeover to 98% in by July 2012
  • Spent $95K on repairs to mitigate the environmental condition and make upgrades to the property in 14 months
  • Refinanced into a long-term CMBS loan to replace the internal loan
  • Have run the property smoothly since with occupancy continually near 100%
Ramblewood in Ft Collins, CO

Ramblewood Apts (Fort Collins, CO)

Property Description:

281 Unit, Class B apartment community
 

Acquisition Details:

As the property had been under managed by the previous owners and was in general disrepair, we budgeted $1 Million to cure physical defects and upgrade units at acquisition, with plans to refinance into a long term loan after completing these capital repairs. Closing occurred on March 27, 2008.

2010 Refinance

  • Completed $900K of repairs and upgrades at the property to address all deferred maintenance items over the course of 28 months
  • Increased occupancy from 85% at acquisition to 96% by October, 2010
  • Secured an additional $3.78 Million in financing through a HUD-sponsored mortgage
 

2014 Refinance

  • Took advantage of the property’s improved condition, exceptional management, and strong local rental market to consistently be 100% leased and increase NOI on a consistent basis
  • Continued to complete projects to enhance the community
  • Capitalized on the property’s increased value to secure an additional $5.2 Million in financing through a Fannie Mae refinance in April, 2014
Commodore Perry in Toledo, OH

Commodore Perry Apts (Toledo, OH)

Property Description:

19 story downtown high-rise built in 1927 and renovated in 1998 (class B). Property also includes commercial space and a large parking garage.
 

Acquisition Details:

We were able to acquire the property at a very attractive price given the stipulation that we close in a very short timeframe. Needing to close more quickly than we were able to acquire debt, we organized a group of investors to provide an internal loan and closed on the property on May 5, 2011. We replaced the internal loan with a bank-financed bridge loan on June 10, 2011.

Refinance (2012)

  • Improved parking garage quality and occupancy and annual revenue
  • Completed $140K in special projects in the first 15 months of ownership
  • Increased average occupancy from 95% at acquisition to 97% by October 2012
  • Acquired an addition $1 Million in financing with the transition to a 15 year loan through Fannie Mae in November, 2012

Supplemental Loan (2015)

  • Between 2012 and 2015 occupancy remained high and total income increased by over 7% annually
  • During the same period, expenses declined, and NOI increased by 26% annually
  • In late 2015, Monarch placed a supplemental loan on the property, allowing us to place a supplemental loan larger than the initial loan and return a significant distribution to investors
Eastland in Kentwood, MI

Grand Rapids Portfolio
(Crownpointe and Eastland)

Property Description:

Crownpointe Apartments: A 184 unit, class B garden-style community in Holland, MI Eastland Apartments: A 456 unit, class B garden-style community in Kentwood, MI
 

Acquisition Details:

Based on the success of our previous investments in Western Michigan, we were eager to acquire more properties in the area. Recognizing that the Grand Rapids economy was in the beginning stages of recovery, we were fortunate to acquire these properties at a discount to market value.

Operations

  • Completed $96K of projects at Crownpointe and $287K at Eastland within the first two years of ownership to enhance each property’s standing within its respective submarket
  • Increased average monthly collections by a combined 12% over the first 20 months of ownership
  • Placed supplemental loans on each property during 2014, resulting in additional financing of $6.6 million between the two properties