The Forest at Fenwick

Property Highlights:

Address:

 

Units:

Construction:

Closed:

Property Managers:

15 Stardust Way

Johns Island SC, 29455

80

2004-2006

March 2016

Adalease

Project Equity:

Project Debt:

Total Cost:

Loan Length:

Loan Rate:

$900,000

$6,300,000

$7,200,000

2 years

5.75% + 30 day LIBOR

 

 

Operational Plan:

  • The owner was about to go into Bankruptcy at the time of selling and needed to close quickly. The property was originally going to be turned into a condominium, but only 8 units had been sold.
  • Our plan was to close quickly with short term bridge financing, buy back the 8 condos, renovate the existing clubhouse and pool area, minor interior upgrades of flooring, hardware, and lighting. Raise rents from $800 to $1,050.
  • Well located B Asset in Johns Island, a submarket of Charleston.
  • Anticipate a Refinance after 18-24 months.
  • Part of proceeds were to buy out fractured condos; $100,000 per condo.

 

Actual Operations:

  • Since closing, bought 5 out of 8 condos for an average price of $90,000.
  • Clubhouse renovation complete, raised rents from an average of $886 at purchase to $1140 on all renovated units plus $45 in water bill back. So far 42 of the 77 units have been renovated. While maintaining on occupancy over 85%.
  • Cleaned up all buildings with exterior trim work, rebranded with new signage, all new pool furniture, added a pet park,
  • Property reappraised in Q3 2016 at roughly $8 million, creating $1.7 million in value.

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