"The work PlusOne Construction did
has more than paid for itself –
and they made it easy!"
– Steve Lazoff, Seattle, WA
North End Remodel
PHOTO
FLOOR PLAN
TOTAL UNITS
Before
28
after
29
total w/d
before
0
after
29
MONTHLY RENT
INCREASE
+140%
NET OPERATING
INCOME
+132%
roi
+151%
cash on cash
return
+10%
The Challenge
The property was previously run as a non-profit & tenant subsidized complex. This meant that the existing tenant base was relying on rent subsidies that were no longer available. Further, we needed access to the units in order to remodel them meaning that existing tenant base needed to move out in order for us to accomplish our goals to increase the value of the complex. This was a tall order given that the existing tenant base didn't have many options for new spaces to move into.
Also, given the property was a non-profit complex, the previous owner didn't have necessary funds to make repairs and improvements. The necessary repairs list was vast including plumbing leaks, unproperly ventilated range hoods, original hot water tanks, and original finishes & fixtures.
Further, none of the units in the complex had Dishwashers or washers & dryers in the units.
Finally, the property had common area spaces which were not being enjoyed by anyone at the property. Simply put - they were wastes of space.
The Solution
For the financially sensitive tenants at the building we devised a plan that allowed all the tenants to stay at the building for a full year until they needed to move out for us to perform the remodel. Our plan also offered a moving assistance program for the tenants whereby we helped find other local housing which would accept their rent subsidies and find them a long term housing option for their future. The program worked great, and we were able to move the tenants to their new housing in a comfortable and non-stressful way. We are proud that we were able to work with these tenants in a fair and ethical way while still meeting our financial goals on this project.
Additionally, we remodeled every unit in the building, adding Dishwashers & Washer/Dryers, making all necessary repairs, and updating all the interior finishes.
We also converted the unutilized common area space into a new 1,065 sqft 2BR/2BA apartment unit AND also added a bedroom to an existing 1BR/1BA apartment to make it a 2BR unit.
Finally, we took care of all the outstanding repair items. We repaired all the plumbing, ventilation issues, replaced all the hot water heaters, and much more.
The net result on this project is a impressive estimated 10% cash on cash return and 150% overall ROI.
