Case Studies

LOCATION: Anderson, South Carolina

PURCHASE: $1,350,000 – December, 2019

SALE: $2,400,000 – August, 2022

EQUITY MULTIPLE: 2.49X

AZALEA APARTMENTS

Azalea Apartments (“Azalea”) serves as an excellent case study for PPV and was our first full cycle syndication. Azalea is a 39-unit apartment complex located in Anderson, South Carolina and was acquired off-market in December 2019. Although 100% occupied at acquisition, the property failed to keep pace with market rents and was not actively managed or improved since it was built.

After closing, we restructured the management of the property, implemented new market rents, and rolled out a capital improvement plan. The capital improvement plan consisted of repainting and refreshing the exterior of the property to increase curb appeal, upgrading the interior of approximately 40% of the units with new fixtures, flooring, paint and appliances, as well as replacing and modernizing the lighting and flooring in the common areas. Finally, we invested in addressing deferred maintenance at the property by upgrading the water heating system, renovating the common areas with new flooring and paint, and improving the property systems.

In approximately 30 months, the income of the property increased by over 20% and the team successfully implemented a utilities reimbursement program to pass through utilities to tenants in line with the market. After a competitive sale process, the property sold for $2,400,000 which equated to over $61k/door, almost 78% higher than the original acquisition price.

A few months later, all investors used a 1031-exchange to roll their investment into Sunrise Terrace and continue building their investment with PPV.