Project update – Fort Lauderdale 24 unit apartment community

Back in November, we picked up a 24 unit complex about 4 miles north of the center of Fort Lauderdale. The property consists of two 2-story buildings, each with 12 units. All the units are identical 2 bed/1 bath units, each just under 1,000 square feet.
 
We liked this building for various reasons. It had been poorly managed for several years, so we knew we could add value just by improving the quality of management. Related, there was a lot of deferred maintenance. We saw this as an opportunity to improve resident satisfaction and increase the value of the building. The property also offered an opportunity to diversify into a lower income neighborhood where we could provide high quality housing to tenants receiving government assistance for their rent payments.    

Here are a few photos of the building before we acquired it:

This is one of the more extensive renovation projects we’ve undertaken to date. In addition to floor-to-ceiling renovations throughout, we’ve been replacing 80 percent of the AC units, replacing the roof on one of the buildings, repainting the exterior, resealing and re-striping the parking lot, and increasing curb appeal with some new landscaping. At the same time, we’ve been working hard to get the tenant base in order—when we bought the building, almost half of the units were occupied by non-paying tenants. 

Despite the challenges, we managed to get the first renovated unit on the market last week. Not bad for a month’s work! We still have a long way to go, but overall we’re very happy with the way this one has turned out. One of the best parts of a project like this is the overwhelmingly positive response we’ve been getting from tenants as we work to improve their community. If all goes as planned, we’ll soon have nothing but happy tenants, happy investors, and another successful project under our belt.
 
In the meantime, here are some pictures of the ongoing renovations: