The Halifax Apartments
Jevan acquired and converted 300 condominiums into a single-owner apartment complex with a total cost of $15mm. Followed by a $19mm renovation which addressed the failed structural and cosmetic elements of the property, the property was sold for $76mm in 2021.
Property Overview
We acquired 300 condominium units from 100 different owners to assemble a wholly owned apartment rental community.
Through our condominium buyback strategy the asset was purchased below market value at a significant discount per door for condos vs apartments.
The condominium HOA was underfunded and could not cure substantial deferred maintenance and life safely issues.
We then instituted a renovation to update 100% of the units and completely upgrade the property amenities.
Strategy
The condition of the property and difficulty to close dissuaded many potential condominium buyers so we purchase the units to create an apartment rental community. We completely renovated the property replacing deteriorating walkways, stairs and cured all the deferred maintenance. Then we instituted a renovation to update 100% of units and completely upgrade the property amenities.
Investment Summary
- Value of the property increased by 500% from acquisition to completion of the renovation
- Increased rents over 55% since acquisition, inclusive of construction concessions
- Reduced utility expense through major system upgrades 39% from prior owner
- All in basis well below replacement cost and significantly below recent sale comps in the sub-market
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