Orange Bungalows Apartments is a six-unit complex located in Costa Mesa’s East Side neighborhood. Our executive team was able to locate the off-market deal thanks to their relationships with local brokers. They also managed the refinancing of the owners’ current assets for the purchase. Paying cash, the owners had a $200,000 renovation budget.
In addition to the deferred maintenance, the property received:
-Helical pier stabilization for three units, two new concrete slabs, and concrete foam injection
-New windows and sliding patio doors for all six units
-Exterior paint and stucco repair
-New garage doors for each unit
-New landscaping, monument-style mailbox structure, irrigation, exterior lighting, and new fencing for each unit
-Full interior renovations including granite/quartz countertops, paint, stainless-steel appliances, wood-like flooring, and light/plumbing fixtures
Despite the scope of these repairs, our project management team came in under budget following the year-long remodel. They were instrumental in acquiring excellent vendors and negotiating fair prices for all of the needed projects. In addition, much of the interior remodeling was completed in-house by our professional maintenance team, saving the owners additional labor costs.
The Right Management
As a result of prior mismanagement, rents were approximately 52% under market upon purchase. Following the remodel and leasing efforts, The Management Works doubled net operating income – adding $400,000 in valuation for its owners. The property is now fully leased and cash flow positive. Our professional managers keep a close eye on the area’s market rates for when lease renewals become eligible. We are proud to say that our residents opt to continue renewing with us. They feel the location, amenities, and value of these units are exceptional.
If you are in the market to purchase commercial real estate but don’t know where to start, let The Management Works guide you through the process. Hopefully this case study shows that we are able to acquire, remodel, and manage any size project for you. For more information visit our “Contact Us” page to either email or call our corporate staff. They will help you identify the next steps to acquire a new property or improve the ones you already own. Contact us today and see how we are improving the way our residents and owners live!