Managing Fractured Condo to Maximize Opportunities

Managing Fractured Condo to Maximize Opportunities

Case Study

Managing Fractured Condo to Maximize Opportunities

Opportunity: Highly opportunistic investment of a 450-unit condominium in Tampa, FL.

Acquired: Dec. 2015

Cash on Cash:

14%

Internal Return Rate:

31%

Equity Multiple:

3.2X

Total Capitalization:

10M

Challenge

Extensive interior and exterior rehab needed, large pending receivables account, $600,000 utility bill, and 120 down units put this property in a financial deficit. This lead to high tenant dissatisfaction and low occupancy levels.

Execution

Completed structural improvements, pool remodeling, paint finishing’s, and unit upgrades. After renovations, condo owners were approached for purchase.

Outcome

  • Collections increased from 60k to over 225k as of 2018
  • Economic occupancy increased from 30% to 95%
  • Restructured Home Owners Association
  • Improved tenant relationships led to increased feedback.

Testimonial

“The team knew that acquiring Tzadik Oaks would take some time to stabilize due to its lack of upkeep; however, our experience in dealing with C-class communities allowed us to strategically revamp the site and ultimately attract and stabilize.”

CIO, Alex Arguelles

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

(786) 295-9568
BIZDEV@TZ-M.COM
11098 Biscayne Blvd, Miami, FL 33161

Increasing Property Value with Capital Improvements

Increasing Property Value with Capital Improvements

Case Study

Increasing Property Value Through Capital Improvements

Opportunity: 184-unit distressed property, located in Tampa, FL just minutes from USF.

Acquired: Mar. 2016

Cash on
Cash

13%

Internal Return Rate:

38%

Equity
Multiple:

3.6X

Purchase
Price:

6.4k

Challenge

An out-of-state owner, poor marketing and management, and unfavorable traffic resulted in low tenant retention and underperformance.

Strategy

Successfully initiated a capital improvements plan aimed at enhancing property curb appeal, upgrading units, revitalizing exterior finishes, and rolling out several unique amenities.

Outcome

  • Rent appreciation by $200/door
  • Occupancy at 96%
  • Improved tenant retention policy decreased turnover by 60%
  • Shortened vacancy cycles

Testimonial

“After a multitude of site-visits and a strong understanding of all capital improvements needed, our team constructed a revitalization plan that ultimately turned this property into a high-performing asset.”

CRO, Christina Alletto

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

(786) 295-9568
BIZDEV@TZ-M.COM
11098 Biscayne Blvd, Miami, FL 33161

Asset Class Reposition to Increase Property Value

Asset Class Reposition to Increase Property Value

Case Study

Asset Class Reposition To Increase Property Value

Opportunity: 248-unit property located directly on the Halifax River in Daytona Beach, FL; one of the state’s most active housing markets due to the cities affordability and new development.

Acquired: Aug. 2016

Cash on Cash:

9%

Internal Rate of Return:

22%

Equity Multiple:

2.3X

Total Capitalization:

15M

Challenge

Severely distressed due to Hurricane Mathew, high delinquency rates, and weak property management

.

Strategy

Completed capital improvements, introduced new management and leasing procedures, and a stronger focus on retention and prospect quality allowed for a more stable tenant base.

Outcome

  • Occupancy at 95%
  • Rent appreciation by $100/door
  • Class reposition from C to B
  • Improved tenant reviews due to new management

Testimonial

“We saw the potential and know the market. Daytona Beach is experiencing serious gentrification and continuously reports population growth of which surpasses many other cities across the country.”

Michael Davalos, SVP of Business Development

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

(786) 295-9568
BIZDEV@TZ-M.COM
11098 Biscayne Blvd, Miami, FL 33161

Management Procedures For Increasing Profits

Management Procedures For Increasing Profits

Case Study

Management Procedures for Increasing Profits

Opportunity: Stabilize a distressed community in Orlando, Florida; a city with impressive property prices, increasing rent appreciation, and below average cost of living.

Acquired: Oct. 2014

Cash on
Cash:

11%

Internal Return Rate:

25%

Equity Multiple:

2.4X

Total Capitalization:

11M

Challenge

Rolling Hills was a 240-unit property confronted by low occupancy, below-market rents, problem tenants, and neighborhood crime. These factors implicated a need for a creative and tactical approach to re-positioning.

Strategy

Upon takeover, problem tenants were immediately addressed, the Crime Free Housing Authority implemented, and improved site maintenance helped revitalize property health.

Outcome

Enhanced curb appeal, new management/protocol, and effective capital improvements drew in more favorable demographics and brought the property to stabilization.

  • Rent appreciation by 190/door
  • Expense reduction by 35%
  • Occupancy at 96%
  • Class reposition from C to B

Testimonial

“We knew that with a strategic rehabilitation plan, Rolling Hills would undergo a complete physical and financial transformation.”

Michael Davalos, SVP of Business Development

MICHAEL DAVALOS

SVP of Business Development

CONTACT US

(786) 295-9568
BIZDEV@TZ-M.COM
11098 Biscayne Blvd, Miami, FL 33161