South Meadow Apartments
Date of Management: April 2015
Occupancy Prior to Management: 98.9%
YTD Average Occupancy: 99.5%
Pre-Capex NOI Prior to Management: $698,957
Current Annualized Pre-Capex NOI: $951,687
South Meadow was being managed by local property owners in Ames, IA. Upon takeover, Corridor re-branded the property and implemented professional marketing materials and strategies to take advantage of a strong rental market and increase rents. In addition, Corridor capitalized on operational changes in staffing, management efficiency, and streamlined operational expenses. Net operating income is up 36.2%.
Van Deusen Apartments
Date of Management: December 2015
Occupancy Prior to Management: 94.4%
YTD Average Occupancy: 99%
Pre-Capex 2016 NOI: $161,238
2017 Annualized Pre-Capex NOI: $199,322
Corridor worked with ownership on a strategy to implement substantial capital improvements to apartment interiors and building common areas to create a better-quality apartment building and higher asking rents. In 2017, Corridor successfully turned half of the units in the building, increasing rents on these apartments by an average of 46%. The total remodeling cost per unit averages $5,000 and has a pay back in under two years. Pre-Capex NOI is projected to increase 23.6% from 2016 to 2017, and as of September 30, 2017, total income (including vacancies, bad debts, etc.) is up 20.5% year over year. Corridor’s 2018 budget is projecting a 42% improvement in Pre-Capex NOI from the current 2017 trend (as of August) as remodel expenses diminish. The property has a waitlist for future vacancies. Rent prices are being increased consistently due to new demand.
Units: 213 Conventional, 5 Commercial
Date of Management: October 2010 - December 2014
Pre-Capex Annualized NOI Prior to Management: $1,520,292
Pre-Capex Annualized NOI at Sale: $1,804,167
In October 2010, Corridor was brought in to manage Macomb Rentals in receivership and stabilize operations, cash flow and reporting. The property faced many difficulties, including: utility shutoffs, overdue expenses, undocumented work orders, cash rent payments not applied to tenant ledgers, and no operating budget. Corridor hired new staff, leased up the building, built a budget and implemented much needed capital improvements. In 2011, a private equity firm bought the property and retained Corridor for management. From 2011 to 2014, Corridor increased the net operating income by an average of $95,000 per year, or 19% over the four years, and stabilized occupancy at 97%. In December 2014, the property was sold to a local investment group, which included Corridor's onsite management team.