Station House
An exciting $7.3M capex project: 103 unit renovations, 6 new units built inside a vacant commercial space, a suite of amenities including a new clubhouse build, a full marketing rebrand, and a management overhaul.
Project details
The Acquisition
Oliver Properties acquired Station House in the third quarter of 2022, after the property had fallen out of another contract. At the time of acquisition, Station House had 104 apartment units, vacant commercial space, no amenities, all-inclusive rents, and was suffering from deferred maintenance issues due to aging systems.
Managing the property was also intensive, as it had large delinquencies, was 15% below market rents, had all-inclusive utilities, and had a poor reputation. To improve the property's market position, a full turnover of residents was necessary to move from an asset C+ to A-. The property was also capex-intensive due to the vacant commercial space, lack of amenities, deferred maintenance, and damage from HVAC and roof leaks.
Acquired for $13.6 million and a capital expenditure plan of $7.3 million in place.
The Execution
The management plan involves raising the rents to market rates, placing management on-site, eliminating all-inclusive rents, re-tenanting the property, re-branding the property, and launching new marketing efforts. The development plan includes adding amenities such as a clubhouse, fitness center, study lounge, pool, and patio decks. Additionally, six more 3-bedroom, 3-bathroom units will be added in the former commercial space, while the roof and aging HVAC systems will be replaced.
