An investor purchased a distressed 72-unit apartment community in the Energy Corridor for $5.2M ($72,222/unit). The property was Class C, built in 1985, with original finishes and rents averaging $750/month. The investment thesis: renovate to Class B standards and push rents to $1,200/month (+60%).
The investor engaged Tell Projects as the renovation GC with a $650,000 budget ($9,027/unit). The timeline was aggressive: 6 months for full renovation while maintaining 60% occupancy.
Renovation Scope (per unit): Kitchen: new shaker cabinets, quartz countertops, stainless appliances, tile backsplash. Bathroom: new vanity, mirror, lighting, toilet, tile flooring, tub surround. Flooring: wood-look LVP throughout. Paint: full unit in modern gray/white palette. Lighting: LED recessed lights, ceiling fans. Hardware: new door knobs, cabinet pulls, faucets. Washer/dryer connections added to all units.
Common Areas: Clubhouse: full remodel. Pool: deck resurfacing, new furniture. Fitness center: new equipment. Hallways: new flooring, paint, lighting. Exterior: fresh paint, new signage, landscaping refresh. Parking: sealcoat and restripe.
Execution: We renovated 4-5 units per week. Vacant units renovated first (30 units in first 8 weeks). Then we renovated occupied units on a rotating basis — tenants temporarily relocated to vacant renovated units for 3 days while their unit was renovated.
Result (12 months post-renovation): Average rent increased from $750 to $1,210/month (+61%). Occupancy reached 95% (up from 60%). NOI increased from $290,000/year to $680,000/year. Property revalued at $8.5M (at 8% cap rate) — a $3.3M gain on a $5.2M purchase + $650K renovation. Total ROI: 572%.
This is what value-add renovation looks like when it's done right. Call (832) 203-7987 for value-add renovation planning.
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