Our first fund, Canton Manor, is exceeding initial targets. In 2021, Canton Manor increased in value by $1.3 million and Coachwood Capital distributed $70,000 in cash flow to investors (Year 1 Cash-on-Cash return of 7.6%). Read more.

Property Overview

Canton Manor closed on January 18th, 2021 and is a 56-unit apartment complex focused on senior living (55+ years old). Built in 1997, Canton Manor is a six story all brick building with concrete construction. All of the units are 1 BD 1 BA.

Investment Highlights

Since Coachwood Capital took possession in January of 2021:

  2021 Year End 2020 Year End
Cap Rate 6.0% 6.0%
Expense Ratio 40.7% 60.0%
Occupancy 96% 95%
Distributions Paid (%) 7.6% n/a
Distributions Paid ($) $70,000 n/a
Property Value $4,650,000 $3,350,000

Submarket

The submarket surrounding Canton Manor has experienced 10.8% growth in rents over the past year. Vacancy rates in the submarket are sitting strong at 2.1%. While the population of the area has remained steady, the population of seniors 55+ is expected to increase 8.6% over the next five years and is the largest increasing age demographic in the submarket.

The surrounding households are posting strong metrics as well. The average home value within a 3-mile radius is $263k and median household income is $121k.

Future Plans

The goal for this property from the beginning was four-fold:

  1. Bring rents to market rates
  2. Complete deferred maintenance 
  3. Complete cosmetic updates where and as needed
  4. Maintain good accounting practices

These 4 goals will command a premium at disposition and maximize investor returns.

Over the rest of the term of the hold period a number of renovations are planned including:

  • Partial roof replacement 
  • Common area carpet and paint replacement
  • Tuck pointing
  • Parking refinish
  • Garbage enclosure
  • Fitness room refreshening
  • Common gathering room furniture update

These capital expenditures are estimated to be in the range of $200,000-$250,000. 

We are anticipating these updates to command a rental increase of $50-$100/month (over and above market performance) which would result in a $33,600-67,200 increase in NOI and increase the property value by an extra $640,000-$1,280,000.

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CLARK WIEBE

CLARK WIEBE

Chief Operating Officer

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