It’s never a straight line from A-Z when doing a 100% tenant reposition and upgrade; but the end game and continued focus is always worth it.  I’d like to share the process that we went through at Oasis at Ashley River, a 116-unit building that was a complete reposition in North Charleston.

The Opportunity:

Due to URS presence and extensive relationships within the Charleston market, URS was given nearly 6 months lead time to become familiar with this asset before it became available.

The property is located in one of Charleston’s strongest submarkets, with beautiful views and was being sold by a long-term owner that had not invested the necessary capital to modernize the community and achieve market rents.

URS became intimately familiar with the competitors in the market and believed with the right renovations and amenities it could achieve similar rents. URS was not the highest bidder, but our track record and performance with the listing broker the seller awarded the deal to URS in April 2015.

The Execution:

URS worked closely with our regional and local contacts to establish a very detailed and extensive renovation program for the asset prior to closing.  The reposition plan included:

  • Full unit renovations: flooring, countertops, backsplash, appliances, vanities, lighting package, paint and w/d connections.
  • Installation of a new pool
  • Installation of an outdoor kitchen, complete landscape overhaul, dog park
  • Full renovation of leasing office and laundry
  • Exterior paint and balcony replacement, rebranding and signage

Within the first 18 months URS had vacated 100% of the units and completed all of the above.

Current Status

The Oasis at West Ashley has refinanced out at 9.2M. We’ve paid off $6.8M of bridge financing, and locked in a 12-year, fixed-rate loan at 4.36%.

We have returned a healthy portion of capital to our equity partners and our focus now shifts to cash flow as the market continues to grow and flourish in Charleston.  We are over 95% occupied, with our A+ property management team in place.

This was a challenge, but hard work pays off.  Thank you to our amazing investors, team at URS and our property management team on the ground for making this happen. If you are an accredited investor who wants to find out about our next opportunity, click here.