Extensive Renovation, Revamped Operations — and a Giant Transformation

Chalet Gardens

Location: Philadelphia, PA

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Holding Period:

1.9 Yrs

Renovation dollars spent:

$7.3 Mil

Increased GOI by:

$2.1 Mil. (43%)

IRR (Internal Rate of Return):

34.66%

Before

A sprawling, 31-acre property, Chalet Gardens had sustained flagrant negligence over decades. Poor management coupled with weak staffing led to hundreds of outstanding work orders, dozens of off-line units, and a less-than-desirable clientele.

As a result of its profile and condition, Chalet Gardens was grossly undervalued, leaving much room for upside upon restoration and stabilization. Redeeming features such as the park-like, sprawling grounds and spacious units (including full-size washer-dryers) increased the potential value-add .

COMPLETE REPOSITIONING

Complete Repositioning

Upon acquisition, Premier initiated a $7M full-property overhaul: nearly all exterior elements were upgraded or replaced: roofs, siding, windows, landscaping, lighting, cameras, and the parking lot. Interiors of the apartments were gut-renovated as well.

Because the property was built on top of a historic landfill, many complex structural issues arose. Thanks to innovative thinking and an extensive network of vendors, Premier was able to resolve these challenges in a cost-effective, strategic way.

today

Today

Upon completion of the renovations and stabilization of its operation, occupancy at Chalet Gardens rose to nearly 100% within months, and became a desirable living destination — despite its historically adverse reputation. The professionally managed property attracts a stable, well-earning tenancy that has transformed the area into a quality home destination.

Thanks to careful, ongoing value-engineering, renovation costs were kept within tight budgetary outlines without compromising on quality.

The property sold in 2021 at a 35% IRR.

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