PER UNIT GROWTH IN VALUE
In strong rental markets, Westland purchases older, rougher apartment communities and invests up to $10-20k per unit into upgrades to achieve a $30k value growth per unit.
BEFORE ⇒ AFTER
Westland achieves these results by merging decades of apartment ownership, and management experience with niche properties (i.e. apartment properties in a condition that is unattractive to institutional investors and also beyond the scope of expertise or resources of individual investors).
ASSET VALUE TIMELINE
Westland’s process generally takes 6 months to complete the upgrades and another year to stabilize the income with higher paying tenants. As soon as the property and market are stabilized, the apartment complex is sold.
Westland’s Proven Strategy
Through booms and busts and in-between, shelter is a basic human necessity. With stricter borrowing guidelines on home ownership, demand for rental housing has increased and so have rental rates.
Rising rents have ignited a boom in new apartment construction pushing rents higher because of new construction costs. To compete, many real estate investment funds are turning to large apartment complexes in prime condition at elevated prices, resulting in limited returns.
The demand enhances a niche opportunity for Westland to upgrade existing apartments of smaller size receiving below-market rents in order to offer competing amenities to new construction, but at a much lower cost, and for a much higher return.
Where others see problems, we see opportunities.
Westland’s team finds properties, typically under 100 units, priced well below replacement costs due to poor condition or management. These problem properties are the opportunities with the potential for significant rent growth with an upgrade, new management, and a modified tenant profile. We establish a specific plan to achieve each property’s potential, purchase it, and perform strategic upgrades designed to enhance its value to prospective renters. Then we maintain our advantage and maximize returns by experienced, effective asset management through the life-cycle of the investment, which is typically 2-4 years.