Catalina Club Apartments
ASSIGNMENT TYPE:NEW ACQUISITION PROPERTY MANAGEMENT
ASSIGNMENT LENGTH:2008 – CURRENT
Built in 2005, Catalina Club Apartments is located 20 minutes east of downtown Columbus in the city of Pataskala. The apartment community consists of 156, 1 bedroom and 2 bedroom apartments ranging in size from 904square feet to 1,192square feet. The community boasts some of the largest apartment floor plans in the Columbus market and offers individual entries, private patios and balconies, large storage closets, rental garages and a clubhouse with a fitness center and swimming pool.
Catalina Club Apartments are considered a “B+” class apartment community in an “A” class neighborhood. The average unit rental rate was $701 per month or $0.66 per square foot at the time of purchase.Based on Ackermann Group’s indepth market analysis,this was below comparable properties in this market creating opportunities for immediate rent growth. In addition, the growing population and businesses in the area, would allow for sustainable and consistent revenue for a mid-term hold.
Ackermann Group’s strategy was to acquire and increase revenue through quality and consistent operational management that would drive annual rent and occupancy. Additionally, by implementingcompany standards and practice improvements in the operational systems, efficiencies and curb appeal would benefit leasing and resident retention providing consistent cash flow growth.
THE ADDED VALUE:
Through basic implementation of best practices and services, Total Gross Rents have increased by 15.4% or an average of 3.1% per year. In addition Ackermann Group navigated through a refinance with HUD in 2012 that resulted in a reduction in the mortgage by 24%. The net Cash on Cash Return between 2009 and 2013 averaged 16.23%. Property value has grown by 34.5% since acquisition based on the Trailing 12 Net Operating Income after capital.