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Amelia Apartments
​Amelia West Townhomes
​Case Study

Overview


Amelia Apartments (82 units) and Amelia West Townhomes (24 units) in Valdosta, GA in Sunbelt Fund I.

The Amelias

After more than a year of ownership at Amelia Apartments (82 units) and Amelia West Townhomes (24 units) in Valdosta, GA in Sunbelt Fund I, below find our pre-investment rationale and a comparison of how the properties have performed under our ownership relative to the prior owners. 
​

The investment strategies at these two assets were distinctly different: while Amelia Apartments was a stabilized asset that had just undergone a property-wide value-add program, Amelia West was a full turn-around project, with non-paying residents and significant deferred maintenance. ​ 

​Since takeover of the two assets, we have increased revenue by a combined 23% and stabilized the assets at a combined 98% occupancy. 
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Quantitative Analysis

  • Amelia Apartments: prior to our ownership average collections per apartment per month was $537.  Given the lack of competitors in the submarket, and average rent of those competitors sitting at $700+, we believed the asset was ripe for rent pushes by improving marketing and professionalizing the property management team.  Through better training, use of “LISA” the A.I. leasing agent, improved property management reporting technology, tighter policies and procedures, we have pushed average rent per unit per month to $631 over the trailing 12-months. 
  • Amelia West Townhomes: unlike the above, the property was in poor physical condition at the time of acquisition, however, we were able to acquire the asset at an attractive $35k per unit, leaving ample room to spend capital remedying deferred maintenance while still maintaining a relatively low equity basis in the project. 

Qualitative Analysis

  • At the time of acquisition, Amelia Apartments had just received property wide in-unit renovations, including new flooring, kitchen cabinets and countertops, appliances, and new bathroom vanities. We capitalized on the prior owner’s renovation spend through organically pushing rents to the market level.  
  • Due to Amelia West Townhomes’ proximity to Amelia Apartments we were able to add economies of scale, easily managing the property remotely from Amelia Apartments while helping to distribute Amelia Apartments’ payroll burden across the additional 24 units. ​

How We Have Run the Asset

  • At Amelia Apartments we have organically pushed rents thanks to prior ownership’s property-wide renovation program, while keeping a steady eye on costs.  We expect to continue to steadily increase average rents and closely monitor costs. 
  • At Amelia West Townhomes we have evicted non-paying residents, spent ~$10k/unit remedying deferred maintenance and renovating units, and have pushed occupancy from 58.3% to 100% and average rents from $522 to $645 today. 

Current Valuation and IRR Scenarios

Community Name
All-in Purchase Price
​Total Liabilities
​Attributed Equity
Amelia Apartments​
 $4,416,578
 $3,109,000
 $1,307,578
​Amelia West
 $1,084,643
-
 $1,084,643
Combined
 $5,501,221
 $3,109,000
 $2,392,221
Community Name
​Valuation Basis
​NOI Observation Period
​NOI
Amelia Apartments
Mkt Cap Rate
October 2019 - September 2020​
 $370,781
​Amelia West
Mkt Cap Rate
​July 2020 - September 2020 Annualized
 $79,056
 
Exit Cap Rate
Exit Valuation
Property IRR
Equity Multiple
Low Case
6.5%
$6,920,571
34.8%
1.41
Base Case
6.0%
 $7,497,286
46.6%
1.63
High Case
5.5%
 $8,178,857
60.4%
1.89

Have more questions?

If you would like to learn more about the team, the Sunbelt strategy, and investing in a Ballast Rock fund, please contact us via email by clicking the button below or IR@ballastrock.com.
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The information contained on the Ballastrock.com web site has been prepared by Ballast Rock Holdings LLC (“Ballast Rock”) without reference to any particular user’s investment requirements or financial situation. Potential investors are encouraged to consult with professional tax, legal, and financial advisors before making any investment into a private offering of securities.  An investment in private securities would be speculative and would involve a high degree of risk. Investors must be prepared to bear the economic risk of such an investment for an indefinite period of time and be able to withstand a total loss of their investment. Please consider carefully the investment objectives, risks, transaction costs, and other expenses related to an investment prior to deciding to invest.  All private placements of securities and other broker dealer activities are currently offered through a partnership with Independent Brokerage Solutions LLC MEMBER: FINRA / SIPC (“IndeBrokers”), which is located at 485 Madison Avenue 15th Floor New York, NY 10022. (212) 751-4424. Ballast Rock Holdings LLC and its affiliates are independent and unaffiliated with IndeBrokers. Any securities transactions or related activities offered by Ballast Rock associated persons are conducted in their capacities as registered representatives of IndeBrokers. To check the background of IndeBrokers and its representatives, visit FINRA’s BrokerCheck. Please see our Form CRS.
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