Gemstone 1 & Gemstone 2
These side-by-side sister properties on the edge of Burien cater to a working-class neighborhood. Each building has 9 units plus a conversion for an additional unit bringing the total number of units to 19. The Gemstones were acquired in May and June of 2017 for a combined purchase price of $2.4MM. Within four months, 50% of planned renovations have been completed including new kitchens, new bathrooms, new parking, new unit numbering, new mailbox system, new windows, new balcony railings and renovated staircases, a brand-new laundry room (where none had existed before), plus the creation of an additional unit, LED lighting, new paint and new exterior landscaping. Invigorate is pleased to add that during renovation, which included a rent raise, vacancy remains at zero percent. The plan is to complete the remaining renovations while concurrently raising rents to market, thereby stabilizing the properties to increase cap rates and help drive appreciation.
This 6-unit property is in a prime location in downtown Burien, catering to a more affluent demographic. Purchased for $988,000 in September of 2017, this 5,796 SF property represents a strong asset in a growing market. Exterior renovations to improve landscape aesthetics were completed within one month of acquisition. Modest interior unit renovations are anticipated to be completed by spring of 2018 commensurate with market rate rent increases.
Greenwood I @ 85th
Greenwood II @ 85th
This excellent project involved the renovation of all individual units, re-rent and stabilization of a classic building. Occupancy remains consistently full. This property was acquired in 2013 for a purchase price of $900k. In today’s current market, we would assume a listing price of approximately $2.25m.
This highly successful project was acquired in 2012 and involved a complete renovation of the interior units, exterior spaces, and re-positioning of an aging 11 unit building. The property maintains 0% vacancy since acquisition. Rent were increased by 55% within one year of acquisition and have steadily risen since then. This property was purchased for $1.5m. We estimate the current market value would be in the neighborhood of $3.4m.
This building required not only renovation but also exterior siding to improve its image and attract better tenants. Once again, there is 0% vacancy. If this building were sold today, we would anticipate a 21% IRR.
Greenwood @ Corliss
The Galaxy Building was tired and old. Rents were below market. Units were worn out. Suffice to say, the atmosphere was not positive. Upon acquisition, Invigorate partners quickly engaged in a process to turn-around the situation. New styling, unit renovations, and re-branding all contributed to the ability to attract top tier tenants. Once again, there is 0% vacancy. If this building were sold today, we would anticipate a 24% IRR.
This 1965 mid-century 6-unit property with a deep backyard is ideally located between Lake Washington and Downtown Seattle in a highly desirable pocket neighborhood. The property was recently updated requiring only light renovation and maintenance. This is a sound investment purchased for $1,595,000 in April of 2017 with 5508 square feet boasts a 6.3% cap rate.
This classic 1960's marblecrete building needed extensive freshening up. A new color pallet was developed, critical surfaces were repainted along with re-glazing all exterior com-mon windows, installing new energy-efficient lighting, and adding several contemporary accents to transform the styling into something clean and crisp while still retaining elements of its "retro" character. The response from tenants has been extraordinary. This 8 unit property was acquired in 2014 for $1.5m. The property remains fully occupied and rents have increased by over . If this property sold today, we would anticipate a 22% IRR.
The Cardigan investment involves plans for the re-design of an "ugly duckling" facade as well as completed interior renovations for 8 units plus the conversion of a two bedroom into two one-bedroom units making a total of 9 fully renovated units. In addition, this 1978 property consisting of 6,155 square feet creates additional value and increased cash flow by tapping into the dynamic long-term furnished housing sub-sector. Purchased for $1,895,000 in March, 2016, The Cardigan consistently holds steady with 0% vacancy. We gestimate in today’s market this property would have an increased value by approximately 40%.