EpiCity helped a struggling apartment complex in the Atlanta area by planning, designing and managing a renovation of 400 units. With the improvements, the property owner is now able to command higher rents (a $100 increase per unit) and attract more desirable tenants. Even more importantly, the work has resulted in a $6.8M increase in property value, which is a whopping 375% return on investment.
In the spring of 2011, the property owners engaged EpiCity to identify opportunities for increasing occupancy and achieving higher rental rates. EpiCity’s Don Walter worked with the owner to design a plan of action, coordinating with the various county departments to ensure the recommended renovations and upgrades would remain in compliance. EpiCity then brought in Epic Development, whose track record of residential design and construction offered the resources and expertise needed to successfully complete the project in a cost effective way.
Originally, the owners opted to test market a few units. By installing granite counter tops, new cabinets and hardwood floors (among other improvements), the owner saw significant results immediately. The outcome was a nicer product, both internally within the complex and externally relative to the competition in the area.
The owners were soon able to bring in more people at higher rates—and the slightly higher rents ensured the new tenants were more stable. Additionally, the higher quality materials recommended by Epic Development (such as granite and hardwoods) are expected to significantly reduce future costs. Thus, the experiment validated the idea and the project was expanded to include all units in the complex.
This investment has the ability to pay the owner an enormous return. After investing about $2 million in the renovation process, the nominally increased rents will result in an additional $480,000 of income per year for the owner—that’s a 24% annual return. This adds approximately $6.8M in value to the property as well—a 375% return on investment.
EpiCity’s improvements have already had a dramatic impact on this once struggling apartment complex. The owners will continue to feel the positive effects for a very long time in the future.