Vintage Caldwell Apartment Revival (Real Client Success Story) by Gregg Davis
We located a property that was in really bad shape aesthetically, but had very good structure, charm and potential in the older part of Caldwell. Our client made an offer that was over 18% below the asking price and we were able to secure the property at about an 15% discount from the asking price and closed (through much adversity from the seller who decided she didn’t want to sell) in September 2018. There were no lease documents and barely any keys. Three units were vacant when we closed escrow. The units that were rented were paying under $500 per month and some were as low as $340/mo. We went to work immediately renovating the three vacant units and then the other four units and got them leased very quickly at an average of $650 per month and the highest rent at $735. The value of the building is now about 50% more than the purchase price within just 6 months of purchasing the property with less than $50k invested in renovations. What’s the point? With the right team—one that knows the market rents, can manage the renovations and estimate the costs associated with those repairs, you can buy a property and add value, force appreciation, and grow your net worth. Our team at Commercial Northwest Property Management and KW Commercial, our brokerage arm, can help you find those neighborhoods that harbor potential gems, help you negotiate and purchase the property, manage the renovation and lease the units at the increased rates to create and grow your property value and in turn your net worth.
Contact us today to see how we can help you!