Multi-Housing News - May 2009 - (Page 24)

renovation tips Class Act Transforming your class C property to a B+ By Jeffrey Adler, The Sanctuary Group Value-added investing in multifamily properties is the classic way of creating wealth and value for owners, investors and residents. Your common area improvements in the clubhouse, pool, kitchen, or café must have a theme consistent with your targeted customer segment. Don’t just copy what the guy down the road has. If you must have common-area laundry facilities, make them special. There are a number of excellent Internet-based services for managing laundry times. Or turn the laundry experience into a café/wireless Internet area for young singles. Also, never skimp on the amount and quality of pool furniture and grills; they should look like a resort. There are plenty of products available that are durable and look great at modest cost. If your community is leveraging the school district, the common areas should reflect a family theme. This works even for people who don’t have kids. If you’re focused on professionals 25 to 35-years-old, spotlight a common-area kitchen and associated social events. Be careful about business centers. High-speed connectivity is a must for everyone now, so business centers generally subsidize at-home businesses to the detriment of the larger community, unless they provide unique professional benefits, such as study groups for the bar exam, a medical library, or police, fire and teaching certification resources. Most of the money is made on interiors. The very first thing to determine is whether there are in-unit washer/dryer hookups in the apartment homes. With hookups, you can turn the property into a Grade B+. Without it, you probably can’t—unless you’re in a high–end urban area where you can substitute a laundry service for washer/dryers and a small combination unit in the kitchen. From research we performed using conjoint analysis, we know that in-unit washer/dryers have a huge impact on price and demand. We found that installing water lines for in-unit washer/dryers can cost up to $12,000 per unit and may be justified if very little other exterior work is required. Kitchen and bathroom cabinets, countertops, fixtures, appliances and lighting are available today in packages specifically tailored to value-added redevelopment. Avoid carpet in the main traffic areas, and limit it to bedrooms. Pay particular attention to interior doors—they should look modern—as well as the thermostat, bathroom fan, bathroom mirror and bath enclosure. Your objective is to remove any visible reminder of the age of the apartment. Also, focus on the use of interior wall color paint to create depth, dimension and warmth. Your model should be consistent with the customer segment and should provide opportunities for the new resident to customize or purchase the look you have on display. How much can you afford to spend? Normally, you should expect to spend no more than $8,000-$12,000 per unit for all of your improvements to achieve a 15 percent rent increase, assuming you are buying the property at a market-level cap rate. Of course, higher rental increases will increase your budget, and a higher average rent market (i.e. Washington D.C., Seattle, LA ) will also give you more room in your renovation budget. MHN Jeff Adler is president of The Sanctuary Group LLC based in Englewood, Colo. and is former Chief Property Operations Officer of AIMCO. See ECO by Cosentino, and other green product introductions, at MHN’s Online Product Gallery. Visit www.multi-housingnews.com/productgallery. A Touch of Luxury 1 2 3 Architectural Systems Inc.’s (ASI) Ecotextures Flooring [1] was designed to coordinate with the company’s Ecotextures Wood Panels. Both products are free of urea-formaldehydes, are manufactured with rapidly renewable Aspen and can contribute to LEED (Leadership in Energy and Environmental 4 Design) credits. The flooring is available in seven colors, including Steel, Natural, Wenge, Chocolate, Gray, Olive and Rust, as well as custom colors (www.archsystems.com)…MirrorMate [2] has introduced a line of fully framed vanity, full-length and accent mirrors available exclusively to commercial customers. They are available in five sizes and will feature 13 of the company’s frame styles and colors, including Acadia in Oiled Bronze, Naples in Antique Silver and Antique Gold, Pemaquid in Old World Gold and Old World Silver, Pemaquid Slimline in Old World Gold and Old World Silver, Soho in Matte Black and Modern Cherry, Tribeca in Burnished Black and Burnished Brown and Uptown in Red Cherry and Sleek Black (www.mirrormate.com)…Dedon’s [3] Slim Line series, available in Carbon and Chalk, offers dining and lounge modules, which can be rearranged to create a relaxed outdoor atmosphere. With the company’s Lounge series, available in Bleach and Java, units can be combined or separated for numerous configurations, including islands, niches and corner sections (www.dedon.us)…Snaidero’s Venus [3] is a customizable kitchen whose main features include a center island integrating food prep, cooking and washing; shelves that can be wall-mounted or suspended; tall units to house appliances; and under-countertop storage area. An optical solution consists of LED lights fitted closely together into a thin aluminum shelf, providing 83 percent power savings. Cabinets are available in the Microtouch finish, which is treated with an eco-friendly tanning process, high gloss or matte Ebony wood, or high gloss, matte or metallic lacquers in the company’s traditional color options (www.snaidero-usa.com). To comment, e-mail erika.schnitzer@nielsen.com 24 May 2009 | Multi-Housing News | Official Publication of Multi-Housing World http://www.archsystems.com http://www.mirrormate.com http://www.dedon.us http://www.snaidero-usa.com http://www.multi-housingnews.com/productgallery

Table of Contents for the Digital Edition of Multi-Housing News - May 2009

Multi-Housing News - May 2009
Contents
From the Editor
Executive Insight: David Picerne
Market Pulse
Investment: A Safer Haven
Finance: Weathering the Risks
Case Study: Industrial Chic
Profile: Green Properties
Technology: Social Media
Renovation Tips
Products: A Touch of Luxury
Perspective: Employee Relations

Multi-Housing News - May 2009