Sold for $53.3 Million
Resulting in a 100% recovery to the trust.
Scope of Work
At foreclosure, the property was only 68% occupied with significant delinquency and deferred maintenance. Issues included roof leaks, collapsing balconies, crumbling exterior walls, missing siding, non-functional amenities and 38 units damaged by a fire in 2009, plus a multitude of city code violations. The city was threatening to shut down the property for failure to correct code violations.
After foreclosure, approximately $5 million in capital repairs were completed to correct city code violations. Additional capital was subsequently spent to bring fire units online, to address damage from a large flood that occurred in 2014, and to improve property amenities. In all, $13 million in capital was spent correcting deferred maintenance items and bringing the property up to the market standard.
CWCAM successfully implemented a revenue management system to increase rents, created additional revenue streams through utility bill-backs, laundry contracts and renting basement storage units. Additional savings were achieved through tight budgetary control and cost savings techniques. Occupancy was increased to 95% with less than 2% delinquency.