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Case Study - Continental Apartments

Westland helps investors achieve 50%+ return in the first year.

This real-life case study is a good example of a major apartment upgrade and the potential for returns.

CONTINENTAL APARTMENTS STATS:

• Location: Portland
• Purchased 2010: $931,850
• Units: 22
• Total Investment: $450,000
• Investors: 5
• Avg. Rate of Return:50%+

Property Profile
Continental Apartments was purchased by a small group of investors Westland put together in early 2010. The previous owners bought the property for $1.175 M in 2007 and put an additional $200k+ into an upgrade. By 2009 the upgrade was less than 40% completed and the owners ran out of funds. The property was 80% vacant and fines were being assessed by the city of Portland because the units were in very rough shape. They put it on the market at $1.7 M. Because of it's very rough shape the property sat on the market. Sensing distress and having a close relationship with the current lender Westland was able to negotiate a loan assumption and a price of 931,850.

Opportunity
The play was simple and the process familiar to Westland.  It included:

• Buy the property for what was currently owed to lenders.
• Evict squatters and non-paying tenants and then raise rental criteria.
• install cameras and security lighting
• Upgrade the units
• Re-landscape the entire project and remove several large trees.

• Put strong and solid management on site.
• Improve signage.

Execution
To execute on our plan investors set aside a total of $217,000, in addition to the down payment and closing costs to fund the upgrade. It was anticipated that another 100k+ would be needed for the which the partners would fund when needed. The upgrade took nearly 10 months to complete

Result
Within 13 months of the purchase the property was 100% occupied and rental income was 10% above projections. The increased revenue is valued at $250K. If the property were sold today the investors would likely get a 50%+ return on their investment after 1 year.