Donaldson acquired Brinkley Manor, completing a $1.9mm renovation that entailed converting the aging and highly inefficient central plant from a two-pipe central heating and cooling system to all new high-efficiency, individually metered heat pumps including full electrical heavy-up, and new electric panels and meters.
43.10% Internal Rate of Return
Additional improvements included curb appeal upgrades including new signage, extensive re-landscaping; and infrastructure improvements including building façade and entryway upgrades, renovated stairwells and hallways, lighting upgrades, and new roofs and plumbing line enhancements, new low flow toilets and flow controls on all faucets, along with interior renovations to 10% of the apartments.
As a result, the utility expense decreased over 74% and NOI increased an annual average of 60.9% over a 3-year period.
|Purchase Price Per Unit||$119,444|
|Renovation Cost Per Unit||$15,169|
|Sale Price Per Unit||$213,889|
|Internal Rate of Return||43.10%|
|Average Annual NOI Increase||60.09%|