Bread and Butter Value-Add Play

Purchased in 2019 for $72M, the Landing checked all the boxes of a hallmark SSRE value-add acquisition candidate: great infrastructure, excellent location, below-market rents, and tremendous upside potential. The asset was outdated and lacked modern unit finishes, common area amenities, and a clean outward appearance, which were all needed to compete in the local trade area and command premium rent pricing.  Since completing the acquisition, SSRE has invested over $4M into the property, spending a majority to renovate the leasing office, pool area, and 95% of the units. The rest was used to upgrade landscaping, exterior painting, and signage. An average of $11K has been spent on each unit for renovations that include paint, flooring, light fixtures, stainless steel appliances, quartz countertops, faucets, one-tub sink, reglaze, and horizontal window treatments and tile backsplashes. The unit renovations have translated into an average monthly rent premium of $300 per renovated unit – a 33% ROI. As a result of the operational improvements and strategic Capex investment, NOI is up about 20% since acquisition with room still to grow, and the asset was recently appraised by a lender at over nine figures!