STUDENT HOUSING BUSINESS AWARDS BEST RENOVATION OF AN EXISTING PROJECT

Transcription

1 STUDENT HOUSING BUSINESS AWARDS BEST RENOVATION OF AN EXISTING PROJECT Raiders Walk raiderswalk.com rd Street, Lubbock, TX Capstone Real Estate Investments, LLC.

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3 SUMMARY PROXIMITY MAP APARTMENT RENOVATIONS BEFORE & AFTER VISUALS

4 SUMMARY 2014 COMPLETED 10-MONTH RENOVATION 1976 ORIGINALLY CONSTRUCTED 97% PRE-LEASED UPON RENOVATION AUGUST & 2 BEDROOM UNITS 0.5 MILES TO CAMPUS VIA PEDESTRIAN BRIDGE Raiders Walk is located just north of the campus of Texas Tech University in Lubbock Texas. The prime location offers students easy walking access to all areas of the Texas Tech University campus. A pedestrian bridge connects the property to campus right at the entrance to Jones AT&T Stadium (300 yards away) and Memorial Circle, the academic core of campus, is also within 0.5 mile. The property provides easy access to retail shops, restaurants and bars along the University Avenue strip and is also situated along the University s Raider Express bus line. Raiders Walk is a 196 unit, 276 bed apartment community comprised of 1 and 2 bedroom units. The property, previously operated under the name Sierra Crossing, was constructed in 1976 and had been a hot spot for students in the 1980s and early 1990s due to its proximity to the TTU campus. However years of neglect led it to fall into disrepair and thus out of favor with students. CREI identified the property and acquired it in an off-market transaction with the belief that the property s location held great potential, but was far from being realized in its current physical and operational state. In addition to and equally as important as the capital improvement plan, CREI s in-house property management arm orchestrated a complete turnaround of property operations and marketing. The successful rebranding as Raiders Walk was achieved with a focused, high energy marketing plan targeting students (primarily upperclassmen and graduate students) looking for lower density living with a walk-to-campus location. Putting a property that had been wallowing in relative obscurity back on the map was a challenging process but was ultimately accomplished. The property leased up to 97% occupancy and was completed in time for August 2014 move-ins. Prior to CREI s acquisition, the property had steady occupancy in the low-mid 80% range with a considerable number of unrentable or down units severely hindering sustainable occupancy levels. Previous ownership was not interested in spending the money required to handle the down units or maintain the rest of the property. The property was poorly marketed and was self-managed by an out-of-state individual owner. Despite having some student residents and being located a stone s throw from campus, the property was not managed to cater to students in any way. Following purchase in late October of 2013, renovations commenced immediately and were completed in 10 months delivering in August 2014 within the budget. The property was partially occupied throughout the renovation process. While logistically challenging, the occupancy provided valuable cash flow to help offset renovation costs. CREI, through various divisions, acted as the developer, contractor, interior decorator and property manager on the project during renovation and continues to manage the property in-house post stabilization.

5 WALKING PROXIMITY COMMON AREA/AMENITY UPGRADES Added property-wide managed Wi-Fi network Ten minute walk Created Fitness Center formerly used as storage (interior, exterior & equipment) Resurfaced both pools and decks and replaced all pool equipment New pool furniture Expanded cable television lineup Texas Tech University Campus Leasing office/clubhouse with coffee bar Business center (includes Macs, PCs and complimentary printing) Security camera/surveillance system installed Parking lot repaving and restriping Security gate renovation Five minute walk Landscaping Signage Easy walk to school or work via the Boston Avenue Pedestrian Bridge RW Site lighting Gutter and downspout replacement Sidewalk repair Added a dog park Added a tanning lounge Added grilling stations throughout the property New maintenance structure and storage area Raiders Walk Apartments

6 APARTMENT RENOVATIONS: Bedroom Crown molding in common areas New light fixtures New vinyl plank flooring in the living room and kitchen New 2 window blinds New electronic key access Modern furniture package offered

7 APARTMENT RENOVATIONS: Kitchen New door and cabinet hardware New laminate countertops and plumbing fixtures New light fixtures Inviting two-tone paint scheme New appliance package including dishwasher, oven/range, microwave/hood, refrigerator

8 APARTMENT RENOVATIONS: Bedroom HVACs replaced Modern furniture package offered Added in-unit washers and dryers to all units, previously laundry center only New carpet in bedrooms

9 APARTMENT RENOVATIONS: Bathroom New light fixtures Bathtubs reglazed New laminate countertops New plumbing fixtures

10 BEFORE & AF TER SIGNAGE FITNESS CENTER

11 BEFORE & AF TER POOL AREA OFFICE

12 BEFORE & AF TER KITCHEN LIVING ROOM

13 BEFORE & AF TER BEDROOM BATHROOM

14 WHO WE AR E Through the use of a value-add renovation program and Capstone s operating expertise, we reposition these properties as attractive, student housing communities. During the process, we look for opportunities to create a more competitive and valuable asset by implementing a host of physical and operational improvements that contribute to a more inviting and vibrant living environment. These improvements often include updated unit interiors, the introduction of new unit and common area amenities, increased unit and building efficiency, and the use of a focused marketing and management strategy that targets students. An attractive option we offer our university partners is the priority use of the renovated community without university financial or operational commitments. This is another example of Capstone s innovative approach to addressing the housing needs of our university partners. Since 2007, we have completed fourteen acquisition/reposition projects and currently have an additional four in various stages of renovation. These projects constitute over $300 million in value and have employed a variety of financial structures including the use of conventional debt and equity, mezzanine financing, and tax exempt bonds. To match a growing potential for this business, we continue to devote additional resources to sourcing and executing future opportunities. Recent examples of Capstone Real Estate Investments activities include the acquisition and repositioning of Seminole Flatts (Tallahassee, FL), University Plaza (Dekalb, IL), and Eagles Reserve (Auburn, AL). In October of 2011, University Apartments (Chapel Hill, NC) was awarded Multifamily Executive magazine s (MFE) prestigious 2011 MFE Award in the category of Apartment Renovations. CAPSTONE R E ALE STATE INVE STME NTS.CO M For more information about this project or others, please contact our corporate office at Capstone Real Estate Investments, LLC. 402 Office Park Drive, Suite 150 Birmingham, AL 35223

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