Substantial Rehabilitation: The Breakers (Southwest)
This 204-unit apartment complex in Austin, TX, acquired by Wingate’s client through lender foreclosure, was a dilapidated, vacant property with more than 180 city code violations. The client’s goal was to complete the redevelopment strategy for the purpose of making a long-term investment in the asset.
- The Right People: This complex assignment required the experience of Wingate’s investment, development and property management teams. Working together, our teams undertook a complex and comprehensive redevelopment of the property.
Our people worked with city officials to resolve complicated zoning and environmental issues. We assembled teams of architects and engineers to stabilize, revitalize and re-think the property from the inside out.
- The Right Real Estate: The Breakers had deep issues with its operations, yet held a key waterfront location on an important thoroughfare. Wingate saw more than just the ability to enhance operations; we saw the full value that the property could command with a deeper, more complete renovation.
In addition to the substantial renovation of the existing structures, Wingate also created a new clubhouse, business office and property marketing center.
- The Right Results: In just 14 months, the property’s rehabilitation lease stabilization was complete. The property exceeded the initial stabilized proforma income by 9% in year one, and property value increased from $8.1 million at rehabilitation to $18 million at stabilized operation–a 45% increase in value above total cost.
The City of Austin gave Breakers an award for “Best Substantial Rehabilitation” as this former embarrassment became a waterfront jewel for the city.