Investment Highlights

Location: Fountain, CO
No. of Buildings: 6
No. of Units: 49

Date Acquired: October 19, 2018
Purchase Price: $4.2M

• Gross income 20% below market at acquisition

• Property not renovated since its 1986 construction

• Substantial mismanaged expense correction

• Removed 24,000 sq. ft. of unnecessary, water-intensive grass areas

• In-unit hookups allowed us to implement a laundry machine rental program and re-purpose the 80% unused laundry room space into an additional unit

Closer Look

Located in a very tight submarket, the property was well kept but hadn’t been renovated for more than 30 years. Previous ownership lost sight of the property’s potential and neglected to optimize expenses. During our due diligence we negotiated a 68% reduction in trash pickup expense, amounting to 11k annual savings. We substantially reduced costly water consumption by re-purposing large sections of unnecessary grass areas. We implemented a renovation plan that includes a base, mid, and top-grade version to uncover the minimum expenditure level needed to reach our target rents. We planned on the top grade package but have been able to achieve proforma rents with our mid-grade package and foresee substantial cost savings. We further enhanced NOI and tenant amenities by repurposing a mostly unused common laundry facility into an additional unit and implementing an in-unit laundry machine rental program.