Apartment Renovation and Resale, Huge Returns

Wes Sanders, CCIM, MAI, played a pivotal role in the renovation of Granada Apartments. Located in Dallas, TX, Granada was an extreme value-add opportunity that was purchased with tarps on the roof. The property was identified as a potential for sale just before it hit the market. After successfully representing the buying group, Wes invested with them as a general partner to help lead the renovation strategy, cost versus value-add determination, and lease-up marketing and incentive strategies. Renovation money was strategically spent to maximize property safety, rental rate increases, and lower ongoing maintenance expenses. After a purchase price under $32,000 per unit, and an out-of-pocket renovation cost of approximately $4,000/unit, a significant disposition sales price was achieved. The property was held for under 18 months when it was put under contract to be sold and total investor return was over 400% as the property was leveraged with interest-only financing during the holding period.