Multifamily | Dover, DE
Acquisition: Premier purchased this 4 building property at the entrance to Dover Air Force Base in early 2009. The seller was PNC Bank, on behalf of a trust. As a result of absentee ownership, the property had unusually high vacancy (22%) and had acquired a bad reputation because it was adjacent to a subsidized housing project of the same name. Fannie Mae provided financing for the acquisition. The acquisition price represented a cap rate of about 7.5% on trailing in place income. One attractive aspect of this property was a large number of very long term tenants.
Actions: In the short time since acquiring this property, Premier has moved the rental office from the back of the property to the front and created a new color scheme, logo, and installed new signage. These actions, along with renaming the property, established a new and separate identity for this property. Premier also installed video security, new perimeter fencing, increased lighting, and held a community meeting to give current and new tenants a sense of security and stability. Finally, stepped up advertising and the creation of a property website and new flyers provided substantial new visibility for the “new” property.
Results: Occupancy has now stabilized at about 95%-98%. The goal is to own this property for a long time and enjoy the cash flow.
Management: Premier has managed this property from the outset to the present, including all leasing, renovations and turnover work.
Ownership: The principals of Premier have significant ownership interest in this property.