Advised purchase in 2008 to private investment group at $26,875 per unit
Repositioned asset and resident profile over 18 month time period
Provided regular cash distributions to investors
Relieved as manager in 2014 to appease activist investors after significant tax increases required suspension of distributions. Continued to advise managing partner
Rehired 12 months later after acting management allowed occupancy dip to 65% and payables to increase $200K+
Arranged funding for recovery efforts
Guided $781K of interior and exterior renovations in 2016
Increased effective rents 65% over 10 years – ultimately, 18% higher than the submarket
Positioned for sale. Sold 2016 for $42,000 per unit. Cap rate: 7.00%
Ashton Park Apartments
The Claridge Apartments
The Art of Hidden Value and Million Dollar Water
Property management, process analysis and improvement, bridge loan financing, rehabilitation, value-add, business development, reposition and disposition
173 Units – Built in 1983
In 2007 the City of Houston was contemplating condemnation and the property was foreclosed.
230 code violations
30% of the property out of service due to flood damage
Rents were deeply discounted, and new residents were required to do their own make-ready.
Terri Clifton was engaged to clear up liens, citations and other liabilities to position the property for sale. This was accomplished over 24 month period with minimal additional investment.
Terri Clifton identified and pitched the deal to a private investment group.
Given the history of the property, investors had reservations. Identifying the hidden asset value, Terri confidently offered funding and assumed a percentage of ownership interest.
Acquisition was completed in September of 2009 for $3,924,851 ($22,687 per unit).
An additional $2.3 million was invested to rehabilitate the entire property.
Reuven Bisk arranged bridge loan financing.
The property was brought back to life over the next three years.
Completed extensive processes review
Identified extensive water usage
Implemented RUBS (Ratio Utility Billing System)
Detected and repaired leaks. Installed water conservation devices reducing water costs by 30%.
Water use was still extensive
Persisted with investigations
Properly maintained systems and with persistent management, convinced the City that metering was faulty. After meter change in January of 2014, water billing went down by another 43% to an average of $6,199 per month.
Improved water management (savings + RUBS) added $163,356/year in NOI.
Increased occupancy to 97%
Increased rents by 14%
Initiated regular monthly distributions
Sold in April of 2015 for $9,149,970 ($52,890 per unit) Cap rate: 9.64% for a 47% gain.
These hands-on, management-directed changes added $1,694,564 to the value of the property, or $9,795 per door
The property continues to provide healthy returns for current owners and is now upgraded to a B+ asset.
The Claridge Apartments
Eagle Heights Apartments From the Ground Up, An Original Concept
New development, construction management, financing, new construction lease-up,
Eagle Heights Apartments
New Development Class A
98 units opened in 2016
Two bedroom units able to be subdivided
Electronic lock system
Texas shaped swimming pool
Private Wi-Fi in each unit
Tiered Services Apartment Concept
3-Level Service Option Available – standard apartments to fully furnished with concierge-level service
Cable and internet service provided with gigabit speed included
Oversize parking with vehicle wash station
Grand Opening gala included a live bald eagle
Rehab, Rebrand & Reposition
116 Units in Pasadena, Texas
Acquired December 2017
Beginning Average Rents $0.84/SF, or $659/Unit
Name changed – All new signage
Fully Remodeled Office/Clubhouse Building
Relocated pool equipment
Rewired to add electrical grounding
Added fitness center and children’s play area
Full wood & paint
Revamped pool area
Extensive ironwork repairs
Plumbing & lighting upgrades to achieve Green Program compliance
Converted from manual to computerized management system
Ongoing unit upgrades
Total CapEx $900K
Nine months after acquisition
Average rents increased 18% to $0.99/SF or $761/Unit
Average rents continue to rise as renewals cycle and unit upgrades continue