Repositioning and Sale: Dockside (Mid-Atlantic)
This 190-unit Class B multifamily apartment community is located in the Hampton Roads area of southern Virginia. Despite a desirable location, market rents and net cash flow had languished. The client’s goal was to expeditiously reposition the asset with the intent to sell within 36 months from acquisition.
- The Right People: Wingate professionals have worked closely with HUD officials throughout the country. At Dockside, we successfully negotiated with HUD and the local housing authority to convert a Section 8 contract for 20% of the units to enhanced housing vouchers, thus achieving higher rents and the eventual conversion of those units to market rate
- The Right Real Estate: Dockside was under-performing for many reasons, but Wingate saw its value based on its prime waterfront location and quality architecture. We then mangaged a capital program that addressed key issues, while an aggressive marketing and repositioning campaign re-launched the property into the market.
- The Right Results: Wingate increased the average monthly income by 28%, while reducing the operating expenses (excluding real estate taxes) by 21%.
The team facilitated the property sale 32 months after acquisition yielding a 25% IRR.