The Reserve at Ashley River

Property Highlights:

Address:

 

Units:

Construction:

Closed:

Property Managers:

6520 Dorchester Rd

North Charleston SC, 29418

280

1980

August 2013

Village Green

Project Equity:

Project Debt:

Total Cost:

Loan Length:

Loan Rate:

Joint Venture:

$2,850,000

$6,501,000

$9,351,000

5 years, no penalty after 2

6%

 

 

Operational Plan:

  • 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.

 

Actual Operations:

  • 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.

 

reserve-at-ashley-river