Port Royal - Beaufort Update September 2024
We are pleased to report that significant changes have taken place at the property since the acquisition in December, 2023. Our contractor and crew lived on site and renovated 31 units. An additional 12 units were renovated in-house, bringing us close to the end of the major stage of the project. While an implemented vacancy program was necessary to have units available for those renovations, the remaining unit upgrades will take place more gradually as units turn over. Freshly painted exterior siding and new LED lighting in the breezeways have overall brightened and modernized the property.
One of the key areas for improvement, other than the unit interiors, was the leasing office. This building, which had under-utilized storage rooms and other spaces, was gut-renovated. We created a fitness center equipped with an elliptical machine, treadmill, weight rack, and boxing bag. A separate section of the building was converted into a new leasing office and designed to also function as a model unit.
The pool renovation is almost complete. The work took longer than anticipated due to our decision to reduce its overall depth to make it a more usable amenity for the residents. The deep end was reduced from 8 feet to 5 ½ feet and now has a much more gradual slope.
The newly renovated dog park has 7 new features for the pups to play in and on. It’s already getting put to great use and is a strong selling point for the property as it is easily one of the largest “bark parks” in the area.
Tree trimming was a significant improvement as the beautiful Live Oaks tend to get very dense and overgrown. A tree specialist was hired to perform the task of making the grounds more open while following all the codes respecting the ancient and protected trees in South Carolina.
A full-time property manager has been brought on board, as well as a dedicated leasing assistant to complete lease-ups now that the units are ready for occupancy. Our regional manager, who lived in the area to oversee renovations, has recently moved back to Florida after 6 months living in the neighborhood. Having her on-site daily during the entire process was invaluable and allowed for immediate feedback with the contractor team to ensure the job was performed to our requirements.
In the six months since work began, approximately $950,000 has been spent on renovations and improvements. We expect to put to work another $200,000 upgrading the units that are already in good shape and adding more curb appeal features such as a seal and stripe of the parking lot and entrance, new signage for the grounds and office, and completion of the pool decking and picnic area.
The Port Royal community has welcomed the improvements, with several past tenants returning due to new ownership and management. They are amazed at the transformation and word continues to spread creating increased demand. More importantly, as we focus on the lease-up phase, we are seeing rent levels come in above our underwriting. 1-bedroom units are achieving $50 premiums, 2-bedrooms $25 more, and 3-bedrooms $75 more than original projections, which will clearly add to the valuation of the property.
We are excited to share some of our before and after photos at the link below!
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