The Delmonte
An intensive $4.5M capex project transforming a 70 unit C+ mixed use distressed asset with significant issues into a 78 unit A- prized asset. Heavy renovations, conversion of commercial space into a residential lobby, and adding a suite of amenities.
Project details
The Acquisition
In Q3 of 2019, we acquired this building as a 70-unit mixed-use property. This property had previously been on the market and had fallen out of contract multiple times with extensive specialized work required. The property was in need of significant management attention, as there were high delinquencies, over 20% vacancy, 25% below market rents, a bad reputation, and major deferred maintenance leaving much needed repairs. To move the property from a C+ to an A- in the marketplace, a full turnover of residents was needed. Additionally, the property was in need of significant capital expenditures, as there were lack of amenities, poor building access, underutilized exterior space, and end-of-life systems such as the roof, windows, HVAC, elevator controls, fire panels. Unit interiors were outdated from 1980's construction, with no washer/dryer in the units. The acquisition price was $5.2 million.
The Execution
Oliver Properties secured an immediate $4.5 million for capital expenditures.
The development plan included replacing the roof and aging HVAC systems, elevator controls, fire monitoring, and windows, as well as renovating the apartments from 80's finishes to modern with granite countertops, new cabinetry, bathroom renovations, and in-unit washer/dryers added where possible. The ground floor commercial space was converted into a high-end amenity lobby, with a suite of modern amenities added including a fitness center, study lounge, patio decks with grilling and firepits, Starbucks café, micromarket, valet trash, and fully renovated laundry room. The remaining commercial space was converted into another grand entrance lobby and 8 additional premium loft style units were built in the former office spaces.
The management plan included a full staffing, new processes for resident experiences, maintenance programs, amenity activation and operations, full rebranding, elevated online presence, and a full lease-up with strategic marketing to reach full potential market rates.
