Apartment Value Add
Over the past 20 years Valet Works Construction has worked with investors eager to buy apartment properties where they can raise the rent and achieve strong yield. There is a vast amount of capital gain renovation multifamily housing targeting value add properties.
In 2017 and 2018 Valet Works Construction renovated a 66-unit apartment community, The Telephone Factory Loft, located right off the beltline in Atlanta, Georgia. This was a full remodeling adding a new leasing office, gym, and amenity as well as adding new bathrooms to apartment units, full remodel of kitchen and old bathroom, flooring, painting, HVAC and more. The total cost of the project estimated approximately $3,700,000.00 (Million) dollars.
After the project was completed the value-add on The Telephone Factory Lofts fell just under $14,000,000.00 (Million) dollars and our client was able to refinance the property and invest in future growth. Projects like these have not only earned us respect from clients but also gave us the knowledge in how we can help you produce these same, if not better gains in your investments. We take pride in educating our partner/clients on how construction cost is not an unwanted expense, it is a financial investment.
When it comes to commercial value add you do not want the cheapest contract; after all you are not flipping a house, you have invested in a commercial building. After the 2007/2008 real estate economical downfall appraisers became less lenient on valuing properties, especially multifamily communities and apartment complexes.
The difference between choosing the cheapest contractor and a more conservative contractor such as Valet Works Construction can be devastating. Cheap budgeting will get you cheap work and in return a very low value add to your property. A one-hundred thousand dollar renovation can lead to one hundred thousand dollars of value to your property, which is no capital gain and a loss in expenses; Or you could choose a reliable contractor and a two hundred thousand dollar renovation could lead to one Million dollars of value add and a eight hundred thousand dollar capital gain.
Contact us now to begin the planning phase of your next big value add or capital expenditure on your multi-family project.