Brentwood: A Case Study

Decatur, GA

Asset Profile

  • Property ClassC+
  • Address3799 N Decatur Rd
  • SubmarketEast Decatur, GA
  • Year Built1969
  • Size156 units

A Smaller-Budget Project Produces Excellent Results

Brentwood is a 156-unit multifamily complex in Decatur, Georgia. The property is well-situated on 11 acres of land in a growing area known for its artistic and educated populace.

Before REAP Capital acquired the property, additional class C residential development was already in progress nearby, and adjacent tracts of land were also being acquired. This suggested that Brentwood was in the path of growth, another advantage in addition to its location close to neighborhood amenities and its access to Greater Atlanta.

However, at the time, Brentwood was in need of extensive renovation. While the property was well built and structurally sound, its apartments were out-of-date and its amenities dilapidated. REAP Capital had limited capitalization for the project, with only $1.6 million to put toward improvements for all 156 units plus common areas, which included a swimming pool.

Leveraging Creative Solutions

REAP Capital’s approach to every project is to focus investment dollars on time-tested accretive capital expenditures and intrinsic value-add enhancements that are most relevant and impactful for residents. With the Brentwood complex, carefully choosing where and how to make upgrades would make all the difference in the opportunity’s outcome.

To get the most value from a limited budget, REAP Capital’s branding and development affiliate and an architectural partner teamed up to identify key areas for improvement. The two firms collaborated on design and implemented attractive but economical revisions to all 156 apartments. The cost was limited to about $10,000 per unit.

In addition, REAP Capital:

  • Took advantage of the property’s large but underutilized pool. Strategic improvements transformed the amenity into a major selling point, which was successfully promoted as the biggest and most desirable pool in the submarket.
  • Added an attractive new leasing office to give a more welcoming experience to new tenants.
  • Created a business center to provide residents with WiFi and computer access for afterschool programs. This measure was both for tenant retention and in pursuit of REAP Capital’s mission to offer inspiring housing options for underserved communities.

Before:

 

After:

 

Maximizing Gain With Minimal Capital

Within two years, REAP Capital had achieved an increase in net operating income for the property. This accomplishment contributed to interest from acquiring parties, leading to the eventual sale of the Brentwood complex. Investors saw a healthy cash-on-cash return and equity multiple. The project sold about three-quarters of the way through its planned hold period.

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"The Brentwood project is an excellent example of the efficiency that our company brings to investment opportunities. We find that targeted capital expenditures and meaningful amenities can move the gauges as effectively as much more expensive upgrades. Giving residents the resources they need supports our mission, improves the community, and drives investment return."

Daniel Alexander, Managing partner with REAP Capital
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Leasing Center Before and After

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