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.
Since Coachwood Capital took possession in January of 2021:
|2021 Year End||2020 Year End|
|Distributions Paid (%)||7.6%||n/a|
|Distributions Paid ($)||$70,000||n/a|
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.
The goal for this property from the beginning was four-fold:
- Bring rents to market rates
- Complete deferred maintenance
- Complete cosmetic updates where and as needed
- 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.