Cascade Oaks in Atlanta, Georgia: A Case Study

Finding Untapped Potential

Asset Profile

  • Phase1
  • Property ClassC
  • Address3820 Old Cascade Rd
  • SubmarketSouth West Atlanta, GA
  • Year Built1968
  • Size112 units

Cascade Oaks is a 112-unit multifamily residential complex located on the west side of Atlanta, Georgia. At the time of the project, the Cascade Oaks complex offered a bustling retail district nearby and easy access to major commuter thoroughfares. The residences were in good repair, but despite being well built, well located, and positioned near attractive resources, the property was not achieving its potential in profitability.

Following its established approach to multifamily real estate opportunities, REAP Capital identified several desirable attributes held by the Cascade Oaks property:

  • The complex was within walking distance to dining, shopping, and other amenities.
  • It could provide students at nearby Carver College with conveniently located housing.
  • Opportunities for reducing expenses and increasing revenues were numerous.

REAP Capital recognized the potential for significant returns based on the fact that Cascade Oaks was already in a desirable location and in the path of residential growth. It acquired the property and began implementing a plan for boosting its performance.

Improved Accounting and Marketing 

Further research revealed that accounting inefficiencies and a lack of strategic marketing were hindering the property’s profitability. REAP Capital’s asset management team worked directly with the Cascade Oak accounting staff members to streamline their practices. It also developed a targeted marketing campaign to showcase the property more effectively. 

Close oversight and experienced management are hallmarks of REAP Capital's work following acquisitions. The hands-on approach we take helps ensure that all of our properties align with our company's values and our investors' goals."

Yusef Alexander, Partner with REAP Capital Management.
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Targeted Changes Yield Impressive Returns

Within nine months of acquisition, REAP Capital increased net operating income at Cascade Oaks by 22.4%. With a leaner and more efficient accounting system in place and by attracting and retaining residents through targeted marketing, the property quickly became profitable. Students at Carver College eventually represented around 10% of all renters.

As the asset was situated in a high-growth section of the city and had been revitalized by the work of the development team, REAP Capital sold the property in relatively short order. Investors in the opportunity enjoyed a healthy return on the capital that they had provided. This meant a positive cash-on-cash return and a greater than two-times-equity multiple. Cascade Oaks’ hold period was well below REAP Capital’s average two-to-five year deal cycle.

Based on the success of the project, each investor chose to roll over the profits and to participate in the 1031 exchange on REAP Capital’s next transaction. This demonstrated the confidence that investors shared in the company’s work and in the ongoing success they expected to have with its development projects.

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