Full contact renovation

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I’m always surprised, when I speak with other so-called “value add” players, how limited their definition of “value-add” is.

There are loads of firms out there running around buying buildings with plans to slap on a coat of paint, re-carpet the hallways, switch out the appliances, and raise rents a little bit.

We are not those guys.

Here’s an example of what we’re doing to a five-unit we’re doing (with permits!) for some fee-for-service clients:

  • Total re-configuring two upstairs one beds into wonderful two beds
  • Dropping staircases from downstairs one beds into unused basement area and turning each unit into a 3 bed two bath
  • Re-configuring the horribly laid-out two bed in back into a wonderful, efficient 2 bed / 2 bath
  • Adding private outdoor space, decks, etc.
  • Re-piping / re-wiring / etc., so that these systems last for 50-100 years
  • Adding all the modern conveniences (washer/dryer, dishwasher, etc.)

You may think this sounds excessive. But, my guess is that, even after paying us a big fee to do the project, our clients are going to be all-in on this building for 9.5x the annual rent and something like $300k / unit for large, efficient units with parking in a premium area.

Does that sound high? The guys building all those units downtown are all-in for something like $400-500k / door for one beds in huge “warehouses for people” where they compete with thousands of other, identical units.

I used to wonder why we get paid what we do on these fee-for-service deals. Now I know.

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