Lofts at 1 Thousand
A transformative $7.5M capex journey: Revamping 213 apartments, reinvigorating commercial spaces, introducing modern amenities, a complete rebrand, and management overhaul at The Lofts at 1 Thousand.
Project details
The Acquisition
Oliver Properties successfully completed the acquisition of The Lofts at 1 Thousand in Q4 2023, overcoming the challenge of previous failed contracts. This mixed-use property, located in a prime area of Downtown Saint Louis, comprises 213 multifamily apartments and 4 ground-level commercial units facing Washington Avenue. Initially, minor renovations were undertaken by the previous owners, alongside collaboration with a third-party management company, in an effort to align the property with market rates. Despite these efforts, the property faced significant challenges, including below-market rents, half of the commercial units vacant, 60% overall occupancy, 20% delinquency, and deferred maintenance issues, all contributing to a deteriorating reputation and leasing performance. After cycling through three different management companies without success, it was clear that a more comprehensive approach was needed.
Recognizing the potential of The Lofts at 1 Thousand, Oliver Properties devised a detailed and robust plan aimed at not just addressing the existing problems but elevating the property to a new standard of excellence. This plan involved a capital-intensive investment, leveraging the team's industry expertise and insights, to not only rectify the issues but also to enhance the property's value for both its residents and the wider Washington Avenue community.
Acquired for $18.75 million and a capital expenditure plan of $7.5 million in place.
The Execution
To revitalize The Lofts at 1 Thousand, we will embark on a comprehensive transformation plan. This will include a major renovation of the grand lobby, modernization of amenities, a complete rebranding and marketing overhaul, and extensive unit upgrades. We will also establish an in-house property management team dedicated to enhancing the resident experience and will implement significant improvements in maintenance operations. A key part of our strategy will be securing a reputable commercial tenant to add value to both the building and the local street environment.
Our management approach will focus on aligning rents with market rates, introducing skilled on-site management with robust backend support, addressing deferred maintenance issues, re-tenanting, and rebuilding the property's reputation. We plan to launch targeted marketing initiatives aimed at achieving full occupancy, emphasizing our dedication to enhancing the property and its relationship with potential renters and the local community.
The development plan will involve adding engaging lifestyle amenities, such as a social events and game room, a cafe, and an inviting grand lobby, all strategically facing Washington Avenue to foster a connection with the building and enliven the street. Fitness amenities will be upgraded to include a dedicated spa room with a cold plunge and sauna. The rooftop area will be enhanced for premium resident and community networking events. Additionally, we will activate an attractive commercial space with dual entrances, enabling a business operator to contribute to the building as an amenity while maintaining accessibility to external customers.
