This 216-unit was a B-asset in a great location alongside a small lake in Valdosta, Georgia. Despite its location, this property performed below its ROI potential thanks to a sub-standard renovation project, local owner-management, and general units being tired compared to the comp-set. These present the perfect canvas for a value-add transformation strategy to uplift the property to a solid B asset that serves aggressive demand in the area.
One of Georgia’s fastest-growing areas, Valdosta provides optimal market dynamics – surging rent growth (62% resident renters) and an average occupancy rate of 97%. As the state’s southernmost stop along I-75, Valdosta/ Lowndes County is anchored by Moody Air Force Base, South Georgia Medical Center, and Valdosta State University. The property is located along a top retail corridor and in a top growth area in Valdosta.
Since purchasing the property, we have made significant investments – unit upgrades with high-end design transformation, new family-friendly amenities, a feature fountain in the middle of the lake, and most importantly provided more responsive customer service to the residents.
These upgrades have had a direct positive impact on the asset, which has generated cashflow even before refinancing, exceeding underwriting expectations and is a year ahead of schedule executing on the value add. The asset is tracking for a solid 22% IRR.
