ADDRESS | PURCHASE DATE | SALE DATE | AVG. RENT AT PURCHASE |
|---|---|---|---|
2800 4th Street S, St. Petersburg | 05/2020 | 11/2021 | $804 |
AVG. RENT AT SALE | RENT INCREASE | NOI | IRR REALIZED |
|---|---|---|---|
$1,077 | 34% | 56% | 58% |
Past performance and statements regarding earnings are no guarantee of future results.
At a glance
2800 4th Street S, St. Petersburg | |
|---|---|
Purchase Date | 05/2020 |
Sale Date | 11/2021 |
Avg. rent at purchase | $804 |
Avg. rent at sale | $1,077 |
Rent increase | 34% |
NOI | 56% |
IRR realized | 58% |
Why we invested
The Sabal Palm Portfolio with its 127 apartments was one of our larger projects, consisting of seven separate properties located along 4th Street South, distributed over a quarter mile.
The opportunities of this project were striking but not easy to implement.
Opportunities and challenges
- As it is often the case with opportunities, they come as a blessing in disguise, meaning the premises and apartments were gravely neglected.
- As a consequence of mismanagement, a noteworthy number of residents had started to withhold rent payments.
- A fraction of the apartments were already untenable.
- The community was demoralized with police being present almost daily and may tenants had given up on it as well as prior management.
- Still, we were aware that the ensemble was very close to bustling Downtown St. Petersburg with many attractive places of work.
- Since the entire package represented 75% of the neighborhood, we felt optimistic to make a real change.
Results
During our previous projects we had recruited our own team of craftspeople instead of relying on third party contractors, giving us the manpower a project like this needed.
Once again we commenced the renovation of dozens of apartments while sorting out which tenants to keep and which could not be kept any longer.
Our investors were not the first to appreciate our work as only two months into the project, local police forces visited our property manager to state the drastic reduction of police operation on the premises.
Within 17 months, the majority of the apartments were renovated. Almost every facade was refaced and various roofs exchanged.
Aside from impressive returns and satisfied investors we were once more able to keep our promise to leave an intact and viable quarter to hundreds of people in the heart of St. Petersburg.
