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SOL@Christown

PURCHASE PRICE $530,000, SALE PRICE $1.69 MILLION


 

Building Description

Unit Mix:  1 BR, 1 BA (23)  and 2 BR, 1 BA (1)

Number of Units:  24
Building Size: 14,297 SqFt
 

Lot Size: 0.97
Acre Year Built: 1964

 
 BEFORE
 

Strategy

  • Evict delinquent tenants
  • Complete rebranding and renovation of property:
    • New brand name and signage (from Kings Apartments to Sol@Christown)
    • Complete exterior overhaul, including new accent colors, pool, deck, BBQ area, and desert landscaping (reducing utility costs)
    • Contemporary, hip interior design
    • Electric car gates and repaved parking lot
  • Market to young professionals
 

the opportunity

  • Single story garden-style apartment community
  • Located in a desirable Central Phoenix submarket, near large mall, university and major transportation options
  • Growing submarket (demonstrated by consistent increase in occupancy levels above those of the metropolitan Phoenix area)
  • Higher average rents in submarket compared to target property ($1.00/SF vs. $0.72/SF)
  • Significant Value-Add/Reposition potential through extensive renovation
  • Opportunity to purchase at a fraction of replacement cost
 
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Results


 
SOL@Christown_LOGO

Within 8 months, 17 units were renovated with the remaining 7 being renovated within 3 days of becoming available using operating cash flow (thus decreasing out of pocket costs).

In under 2 years, we increased property value by 136%.

Delivering UNLEVERED IRR of 45% to our investors.

 
 
 

Deal Metrics


 

At Purchase

Purchased Apr 2013
Purchase Price $530,000 (All cash)

Price per Door - $22,083
Price per SqFt - $37.03

Avg. Rent at Purchase - $433/Mo.
Occupancy Rate - 54%

Capital Expenses - $172,000
Total Investment - $702,000

 

At Sale

Sold in Aug 2016
Sale Price - $1,695,000

Price per Door - $70,625
Price per SqFt - $118.55

Rent Increased to $725/Mo. (highest)
Occupancy Increased to 96%

Appreciation Rate - 141%
Unlevered IRR - 44.96%
Trailing 12 prior to sale, Cash-on-Cash - 17.43%