THE PROPERTY:

PROMENADE PARK AVENUE

LOCATION: Orange Park, Florida
PURCHASE: $6,740,000 – December, 2017
SALE: $10,550,000 – February, 2020
IRR: 37%
EQUITY MULTIPLE: 2x

THE STORY

Promenade Park Avenue, a 105 unit apartment complex, was purchased off-market in December, 2017 from the family of the original developer. While the property was generally well-maintained, it was not pro-actively managed, had not seen any significant improvements since it was originally built and none of the apartments had been renovated.

Quad Property Group installed new management, rebranded the property and rolled out a targeted capex plan that significantly upgraded the property’s common areas and exteriors. In addition, approximately 10% of the units were renovated with new kitchen and bathroom appliances, wood laminate flooring, new lighting and fixtures.

In just over 2 years, NOI at the property increased significantly. After a competitive bidding process, the February, 2020 sale achieved a price of $10,550,000, which equated to over $100,000 per unit, over 55% higher than the prior sale price.





THE PROPERTY:

THE FOREST APARTMENTS

LOCATION: Jacksonville, Florida
PURCHASE: $4,100,000 – September, 2016
SALE: $7,300,000 – November, 2018
IRR: 55%
EQUITY MULTIPLE: 2.7x

THE STORY

The Forest Apartments, a 112 unit apartment complex, was purchased at a discount after languishing on the market for several months in 2016. Despite being a market-rate apartment complex, the property was managed by a property management company that worked almost exclusively with affordable and subsidized housing complexes. As such, rents were extremely low and had not been raised in years (despite rents increasing throughout the market area).

Quad Property Group installed new management, enhanced marketing and rolled out a targeted capex plan that significantly upgraded the property’s common areas and exteriors. In addition, approximately 25% of the units were renovated with new kitchen and bathroom appliances, wood laminate flooring, new lighting and fixtures.

In just over 2 years, rental income at the property increased by over 30%. After a competitive bidding process, the November, 2018 sale achieved a price of $7,300,000, which equated to over $65,000 per unit, almost 80% higher than the prior sale price.