A Distressed Apartment Complex Gets a Second Chance
Managing and Repositioning 484 Apartment Units in Receivership
This 484-unit apartment complex in Pine Hill, NJ, had seen better times—owners failed to meet financial obligations and the complex was being sued by its local borough for failure to address violations. We were selected by the lender to manage, reposition, and sell the property as a receiver under a court order. It was 73% occupied and needed a wholesale revamp to attract more tenants as well as a buyer. Our plan included
- Phased repair and replacement, working within the property’s cash flow to address both simple (sidewalk cracks) and complex (failing sheathing) issues
- Transparent negotiations with the local government to create a plan for safe, stable housing
- Staff replacement
- An aggressive marketing campaign
Before and After, Adding Value
In just 19 months we increased NOI by 95%, adding close to $8 million in value to the property. Leasing improved and occupancy increased. Deck and sidewalk repairs were completed and once sheathing repairs were commenced, the borough dropped its lawsuit. Our market study and subsequent leasing success demonstrated that rents could be increased while expenses were streamlined. The property sold for double its initial value.
Read More
