Acquisition: In early 2014 Premier learned about this 216 unit apartment property in Richmond, Virginia, just down the street from its Brookhill Shopping Center. While the property was in a lower income area, we were struck by the fact that it was bordered by two public schools on one side, and an upscale neighborhood across the street. The property was built in the ’40s, but was constructed of attractive brick with slate roofs in a park like setting with 3 city blocks of road frontage. The property was owned by FNMA, so while the price was extremely low, the acquisition was truly “as is, where is, with all faults” and had to be accomplished in a very short time frame. Premier recognized this unique opportunity and moved quickly, financing the property through BB&T with assistance from Northmarq.
Actions: At the time of acquisition the project suffered from 35%+ vacancy, serious delinquency,, and significant deferred maintenance. Some of the improvements immediately undertaken included bringing wiring to code, installing laundry rooms, adding 43 video cameras for security, undertaking a roof refurbishment program, replacing over 1,000 windows, and establishing best practices in the management office. On the marketing side, the property was renamed to Premier Gardens with new signage and a new website, not to mention a new advertising program.
Results: While there were many challenges along the way, occupancy quickly began to climb, increasing over 15% in just the first 16 months. People noticed.
In January of 2016 we received an unsolicited offer from a New York investor that we could not refuse! Needless to say both Premier and our investors were very pleased to be able to sell this project at a substantial profit less than 2 years after first putting it under contract.
Management: Premier managed this property.