Value-Add's More Than Just a New Coat of Paint
A value-add strategy for an existing multifamily property has two parts, Structure Property Management Group managing partner Eric Kramer tells us: capital improvements and controlling operational costs. Structure PMG recently acquired the 44-unit Villa Grande at 7720 Crescent Ave in Buena Park, across from Knott's Berry Farm, and the company plans improvements to both its interior and exterior over the next several months.
Eric says the deal was a rare opportunity to acquire an asset in central Orange County, where demand for rental units is particularly strong. Even so, the improvements will help keep the property fully occupied. Built in 1971, Villa Grande consists of two buildings on 1.3 acres, and Eric adds that both the value-enhancing improvements and improvement of the NOI through increased rental income, along with effective management of operational costs, will work in tandem to drive ROI.
