The Winchester is our latest property and I wanted to give you an idea of what we found during our due diligence visit.
If you look at the Winchester online, you’ll see the photos are attractive. It’s not quite as attractive in person, but the property is surprisingly clean. The signage is new and the landscaping is fantastic. Right across the street, there are high end townhomes.
The Winchester leasing center looks a little bit like a lodge with some stone in front. The exterior of the apartments has a red and brown color scheme, and doesn’t really match the area. This is one of the best neighborhoods in Northern Atlanta, so we’re going to upgrade and make the building look more modern, and some of the amenities, like the pool, need to be upgraded to match the comps.
We’re also going to upgrade the interiors to match the comps in the area. The model unit looks nice, but there's definitely room for improvement.
The kitchen doesn't match the market. For example, it doesn't have granite countertops, and the cabinets are not the way they need to be. So, the kitchen needs an upgrade to make it more modern and more like the comps we're going after.
The flooring is a cheap rolled vinyl, and that’s not the type of flooring we want in the unit. The light fixture placement in the hallway needs to be fixed as well.
The bathrooms look nice but again, they don’t match the market. We’ll need to put in granite countertops, and a framed mirror. The vanities will need to be replaced and we’ll need to put in low flow toilets because that’s what the sort of tenant we’re going after is looking for.
The bedrooms are actually much bigger than some of the comps, so we have a lot of opportunity with these units to upgrade and capture the target rents we are after here.
IN COMPARISON
One of our comps is just up the road and seemed in clean shape. That’s what we’re modeling after. It was built around the same time frame, a little younger and the rents are an average of $350 higher per unit.
There’s another comp just up the road that’s getting $500 per more per unit. So we get some good ideas from these units of these buildings, and we can make ours look very similar.
We’re encouraged by our rent projections, which are about $350 higher than these units are currently getting.
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IN SUMMARY
It’s a clean property. There are 11 others in the area, and this is on the low end. With some some minor design changes on the outside and major upgrades on the interiors, we think we can raise rents to match the lower end of the comps that we're seeing in this fantastic area of Atlanta.
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