Austin & Decatur Estates

The Sponsor originally acquired these Decatur properties as a pair (118 Units & 136 Units respectively), at a highly favorable cost basis of $46,000/unit. Although few local comps supported significant rental premiums for value-add renovations at the time, the Sponsor identified early signs of growth in the submarket and moved decisively to establish a foothold.

 

The strategy involved both physical improvements and a full re-tenanting of the properties, due to a high percentage of delinquent tenants. A key component of the repositioning was the implementation of enhanced security measures, which significantly improved the community environment. As one of the earliest operators to invest in this transitioning area, the Sponsor delivered a record-setting return; demonstrating the strong upside of a first-mover strategy in an emerging market.