This 744-unit, Class C property in suburban Detroit was foreclosed in January 2012 with 270 down units, no financial records, and more than $4.5 million in capital repair needs. Working for a second time with an experienced property management group, Anthora crafted a plan to boost the property's valuation above its $12 million appraised value.
With Anthora's direction, property management enacted a comprehensive, multi-step improvement plan that prioritized buildings with the least number of down units and lowest per unit restoration cost. Concurrently, an innovative concession plan was implemented, providing travel gift cards in lieu of free rent. Not only did this strategy result in lower per unit concession rates, it also provided the property with a significant marketing advantage. Other outreach efforts included partnering with local youth groups to provide after school programs in and out of the community and reconfiguring the clubhouse and modernizing the fitness facilities. Exterior improvements included new roofs, siding and balcony replacement, repainting, paving, and a multitude of other structural and cosmetic repairs.
After $3.4 million in capital improvements over 8 months, occupancy increased 18% to 85% including 250 units returned to service and all roofs replaced. With operations on a strong upswing, Anthora secured a $24.5 million offer from a qualified buyer in August 2012.