Parke Laurel Apartments

Property Constructed 1966/1971
Date Purchased August 2006
Purchase Price Per Unit $83,697
Renovation Cost Per Unit $9,150
Date Sold September 2007
Sale Price Per Unit $116,350
Internal Rate of Return 49.52%
Average Annual NOI Increase 29.28%

Parke Laurel Apartments (formerly Larchdale Woods) was a sleepy, under-performing asset that was under-managed, under-capitalized and poorly maintained. As a result, curb appeal was poor, rent levels and income generated were below potential and operating expenses were excessive.

The Donaldson Group initiated a $10mm renovation program (of which approximately $4.8mm was spent before sale) focused on common area upgrades (including replacement of building entrance storefronts and stairwell/hallway upgrades), exterior building and site work (including installation of new balcony rails and re-decking, re-landscaping and fencing, roof replacement), mechanical, electrical and plumbing (including replacement of condensing units, installation of high efficiency water heaters, and replacement of furnaces), and interior apartment renovations.

As a result, we increased rents approximately $250 per unit (renovated) in less than one year and increased NOI approximately 30%.