Suburban Deconversion Property Management
In June of 2020, 33 was asked to assume management responsibilities for 48 out of 60 apartments in the complex, as well as takeover management of the condo association. Leading up to the acquisition, we provided underwriting guidance to help our client target his pro forma cap rate and cash-on-cash returns. As part of the assignment, we had to negotiate with the remaining unit owners to purchase their units, as well as stabilize the building which was suffering from severe collection issues coming out of COVID.
In 6 short months, the remaining 12 units were acquired, the condo association was dissolved and our client was able to take full ownership of the property. Through collaboration with Cubed Construction and 33’s leasing team, the property was renovated and brought to 95% occupancy by August of 2021. Our client stabilized the property at close to a 9 CAP with cash-on-cash returns exceeding 15%.