The Reserve at Ashley River
6520 Dorchester Rd
North Charleston SC, 29418
5 years, no penalty after 2
- At closing, physical occupancy was in the low 80%’s with economic occupancy trending in the 70%’s with 18 down units due to poor management and significant deferred maintenance (structural and cosmetic)
- The Plan was to focus on exterior needs in the first 120 days while turning units and stabilizing the tenant population, then commence work on down units and achieve stabilization.
- Very well located C Asset in the strong Charleston Submarket.
- Anticipated a 7 year hold to maximize rents to market levels and sell or refinance as the property develops.
- Within the first 8 months 88 poor tenants were evicted and 112 tenants had moved in, with only 28 vacant units. If down units are excluded then that is a vacancy of roughly 90%. Down units were continually renovated be at a rate of 2-3 units a month.
- Average rent on takeover was $607 a unit and as of 3/16/14 the average rent was $637. As well as instituting a flat RUBS program of $55, $60, and $65 per month on 2×1, 2×2, and 3×2 respectively.
- All deferred maintenance and exterior work was completed within the first 12 months along with new signage, light renovations to the laundry room, pool, and playground.
- The property was eventually sold in August 2016 with a selling price of $12.5 Million and returning roughly 185% on investor equity.