The following case studies are typical of Westland projects, yet each has its own unique issues to overcome in order to yield a substantial ROI.

GATEWAY CROSSINGS

Units
Acquisition
Investment
Est. Exit
Est. Value
Est. Gross IRR
30
12/12
$958,000
10/16
$4,012,000
52.3%

THE RIDGE

Units
Aquisition
Investment
Exit
Value
Gross IRR
80
7/12
$1,860,000
1/16
$7,182,000
50.0%

CONTINENTAL

Units
Aquisition
Investment
Exit
Est. Value
Est. Gross IRR
22
4/10
$595,000
12/16
$2,260,000
28.4%

WOODCREEK

Units
Aquisition
Investment
Est. Exit
Est. Value
Est. Gross IRR
70
12/12
$1,855,000
10/15
$3,819,000
30.4%

Gateway Crossings Case Study

AFTER
BEFORE
  1. Gateway Crossings After
  2. Gateway Crossings Before

COST OF INVESTMENT

$1

REALIZED PROCEEDS

$1

GROSS IRR

1%

Situation:

Gateway Crossing Apartments is a 30-unit complex located in the heart of east Portland’s Gateway, a Class C neighborhood with good arterial access. Previous owners performed incremental upgrades that retained most tenants.

Problem:

Despite minor improvements, tenants that the property attracted could not provide the revenue to support more than a breakeven business, and so for 6 years, positive cash flow was nil. Expenses to care and manage the property were increasing. Unwilling to make a significant additional investment, the owners decided to sell.

Solution:

Westland’s investors purchased the property for $1.4 million after an alternative offer collapsed. Seeking to appeal to a demographic which could generate sufficient revenue, Westland invested $450K for a major upgrade, rehabilitating the buildings and attracting new tenants.

Result:

The per-unit value of the property increased from $15K to $60K, or a total of $4.7 million. Over 3 years, with new tenants, revenue increased nearly 3-fold, creating an estimated 52.3% IRR over that period.

The Ridge Case Study

AFTER
BEFORE
  1. the-ridge-after
  2. the-ridge-before

COST OF INVESTMENT

$1

REALIZED PROCEEDS

$1

GROSS IRR

1%

Situation:

The Ridge, then Evergreen Ridge, a 118-unit failed condominium conversion located in Vancouver, Washington. Only 38 of the apartments had been converted. It was on the market for 12 months in 2010 by a seller in bankruptcy.

Problem:

Potential buyers backed away as they discovered that the property was entangled in legal disputes involving both the unconverted apartments and the condominiums, not to mention maintenance issues such as the siding, which pushed through with finger pressure.

Solution:

Westland worked through a year of negotiations with the bankruptcy court, seller, and condominium HOA to finally close the purchase at $4.5 million. Westland invested $1.3 million to repair the siding, decks, replace windows, and upgrade the 80 units.

Result:

Just three years after the purchase, the property was refinanced at $11.5 million and investors pulled out double their initial investment. Based on the appraisal at the time of the refinance, the owners’ equity left in the property is also double that of their original investment.

Continental Apartments Case Study

AFTER
BEFORE
  1. ContinentalAfter2400x1600
  2. ContinentalBefore-2400x1600

COST OF INVESTMENT

$1

REALIZED PROCEEDS

$1

GROSS IRR

1%

Situation:

Continental Apartments was a 22-unit apartment house located in Portland’s Hazelwood neighborhood which includes most of the Gateway Urban Renewal Area, Gateway Transit Center, Mall 205 Shopping Center and Adventist Medical Center, but where livable, affordable housing was in short supply.

Problem:

The property had been cited for 170 building code violations by the City of Portland, and several apartments needed a total renovation. The property’s appeal suffered in many ways providing an interesting opportunity for a buyer willing to make the investment needed to upgrade it to a profitable business

Solution:

Westland’s investor group made renovations costing well over $15,000 per unit. All the previous violations were corrected satisfactorily, including roofing, rotten wood, windows and trim. Interiors were painted, floors and counter-tops replaced, grounds were landscaped. Besides ongoing maintenance, the entire exterior was painted.

Result:

After only 2.5 years, Continental was re-financed to give owners $401K. Tenancy stabilized at over 90% occupancy and Net Operating Income increased, providing $360K to owners over the course of ownership. And 4 years later, net proceeds from the sale were $1.5M.

Woodcreek Case Study

AFTER
BEFORE
  1. woodcreek-after
  2. woodcreek-before

COST OF INVESTMENT

$1

REALIZED PROCEEDS

$1

GROSS IRR

1%

Situation:

Woodcreek is a 70-unit apartment complex located in Fairview, Oregon.

Problem:

The property was purchased as a long-term hold, but it was so poorly managed, it didn’t produce. It needed minor exterior upgrades, mostly cosmetic, but the major problem was poor property management.

Solution:

The solution for the initial owners, rather than invest more, was to sell quickly at an attractive price. Westland recognized the bargain, made cosmetic upgrades, including some decking, garage roofing and asphalt. With new responsive management, rent revenue increased appreciably.

Result:

After 2012, the rental market improved rapidly. Westland sold the property in less than 2 years, doubling our initial $1.86 M investment.

1335 North Case Study

AFTER
BEFORE
  1. 1335-after
  2. 1335-before

COST OF INVESTMENT

$1

REALIZED PROCEEDS

$1

GROSS IRR

1%

Situation:

1335 North, formerly King’s Landing Apartments, is an 84 unit property located in Corvallis, a University town in Central Oregon.

Problem:

The property was high density, but not with students, and in rough condition. Its weathered plastic lattice-work begged for renewal. Thefts had occurred there. While located close to the university, it was not being marketed to students, young academics, and other university employees. Westland bought the property in 2014.

Solution:

Westland performed major upgrades to the interiors. To the exterior, it added heavy gauge corrugated galvanized sheet metal to create an urban industrial feel. Marketing targeted university-related prospects.

Result:

Based on a re-fi in February of 2016, this $2 million investment will sell for over $5 million in 2018, yielding a 22.6% IRR.

Westland Investments