Oak Ridge Apartments is a 1974 built 137-unit apartment community, consisting of 43 One-Bedroom units, 81 Two-Bedroom Townhomes and 13 Three-Bedroom Townhomes. New ownership has the unique opportunity to purchase a rare majority townhome-style community and capitalize on a proven existing renovation plan. Currently the property has 96 partially renovated units consisting of updated white raised-panel cabinet faces, recessed kitchen lighting, resurfaced kitchen and bathroom vanity countertops, black appliances and vinyl plank flooring. Additionally, 6 of these units (marked “Deluxe”) have been fully renovated within the past 12 months. Cushman and Wakefield suggests the following value-add additions to achieve an average of $215 rent premiums over the current market rent.
Suggested Interior Improvements
• Addition of washer/dryer connections in all one-bedroom units
• Addition of stackable washer/dryer appliances in all floor plans
• Glass kitchen backsplash
• Raised six-panel cabinet doors in kitchens and bathrooms in the remaining 30% of the units
• Upgrade lighting and plumbing fixtures in the remaining 30% of the units
• Install microwaves in all floor plans
• Install vinyl plank flooring in the remaining 30% of the units
Cushman & Wakefield has also identified common area improvements to be made in conjunction with the interior value-add plan. The cost of these common area renovations is estimated at $300,000 (approximately $2,189 per unit), below are a proposed ideas:
Suggested Exterior Improvements
• Addition of dog park
• Upgrade landscaping and signage
• Resurface, extend and amenitize the pool decks
• Conversion of pool house into leasing & fitness center
• Addition of a package receiving service
• Repainting building exteriors
Cushman & Wakefield estimates the value add plan to cost approximately $825,000 ($6,000 per unit). The estimated two-year timeline would yield an average effective rental premium of $242 and yield a 24% Return on Investment.
