7 Story Multi-Family Value-Add - Tower Apartment Reposition

[Steven Gesis]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Cleveland.

Contributors:
Matthew Fritz

7 Story Multi-Family Value-Add - Tower Apartment

Complete Interior and Exterior Renovation - Lake View Property
New 25000 Sq. Ft. Pet Park
EV Car Charging Station
Modernized Hallways & Signage
Interior Remodel: Kitchen with Mosaic Backsplash, Stainless Steel Appliances
LVT Flooring Throughout
New Modernized Bathroom with Tile Surround and New Water Sense Fixtures
NEW LED Lighting, USB Outlet, New Outlets, New Switches
Tech Package: Smartland Wi-Fi Internet*, Nest Thermostat, Alexa, Digital Door Locks (No More Keys)
8th Floor Community Room with 270 Degree Lake View (New Windows, Activities, Comfortable Zen Seating, Full Service Kitchen & Bathroom)
Much More........

What made you interested in investing in this type of deal?

It was complex it was a tower, it is outdated, logistics were going to be complex considering the need to renovate all the suites while the residents remained in place

How did you find this deal and how did you negotiate it?

On-Market Deal - it followed our underwriting guidelines and showed potential if the right operator was at the helm.

How did you finance this deal?

Used a conventional commercial mortgage

How did you add value to the deal?

We modernized and added amenities to the tower. We brought the units into this century and were able to stand-out as market makers, with a middle priced product, not the cheapest and not Class A expensive. Tech package., new kitchens and bathrooms, new flooring, removed the hallway carpet and installed an epoxy floor system - lots of fun and exciting upgrades! Pet Park!!!

What was the outcome?

We have had great success in matriculating residents to the new suites and the engagement in the building has improved so has life and reputation.

Lessons learned? Challenges?

Towers come with own set of rules and regulations for fire, compliance, central mechanical, elevators, roofs, accessory rooms/office, and model units- this has been amazing experience working on building new efficiencies, implementing CAPEX with large NOI drivers - VeryExciting to have walked the gauntlet on the tower apartment versus garden-style - Truly expanded knowledge and experience. Ready for the next level and larger challenge.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We always work with our internal team @Smartland - the team is a vertically integrated brokerage, management, maintenance, construction, marketing