Sterling Pointe Apartments currently has 193 units partially renovated with resurfaced cabinets and countertops, updated brushed nickel lighting fixtures, tile backsplash, six panel doors and vinyl plank flooring. Based on the current market competitive set, a value-add program would allow for monthly rents to be increased by approximately $174 per unit over the current in-place rents. Cushman & Wakefield estimates the cost of a full renovation for a standard unit is $4,000 for One-Bedroom units and $5,000 for Two-, Three- and Four-Bedroom units. An additional $2,000 is expected to enhance a partially renovated unit to fully renovated condition to achieve proposed pro-forma projections. Furthermore, we have allocated $1,000 per unit for exterior improvements. This value-add program results in Effective Rental Income growth of 31% and a 29% Return-on-Investment once fully implemented. Below are some suggestions in order to achieve this premium:
Interior Renovations
• Install black or stainless steel kitchen appliances including microwaves
• Install glass mosaic kitchen backsplash in the remaining units
• Vinyl plank flooring in all common areas in remaining units
• Add six-panel cabinet doors
• Install full-size washer and dryer appliances
• Raised six-panel doors throughout
• Brushed nickel plumbing and electrical fixtures
Exterior Renovations
• Install a swimming pool with cabana and modern furniture
• Add bark park
• Fully gating the community (gate house still present)
• Adding privacy fence in sliding glass units
• Upgrade existing grilling stations and picnic area
• Car care center
