This week’s article highlights our progress at Northwood Apartments, a 24-unit property we acquired in New Hope, MN, in February. Originally known as Bella Vista, we chose to rebrand it as Northwood Apartments, inspired by the park located directly behind the property.

Reaching Stabilization

Northwood Apartments has reached a major milestone: we’re now 100% leased and officially stabilized after an intense summer of renovations and leasing. Since acquiring the property in February, we've renovated and leased 16 of the 24 units, with an average renovation cost of $16,500 per unit. These upgrades have allowed us to increase rents by $350 for two-bedroom units and $225 for one-bedroom units. Reaching stabilization is crucial, as it means we’ve achieved full occupancy and established consistent rental income, setting the property up for long-term success.

This milestone would not have been possible without the BLVD Management team, particularly Derek Day, our property manager, who does an outstanding job managing leasing inquiries and securing exceptional residents. He also plays a key role in guiding less suitable residents to consider other housing options.

Additionally, our maintenance director, Brett Jackels, brings invaluable expertise from his years of apartment rehabilitation, ensuring that all work is completed to our standards and on time.

Exceeding Rent Projections

Today, we are exceeding our year-three average pro forma rent just eight months into ownership. Achieving this benchmark early indicates that we are well ahead of our projected timeline, generating higher rental income than anticipated. This success not only validates our investment strategy but also increases the property’s cash flow, benefiting both its performance and our investors.

In addition to strong rental performance, we’ve successfully introduced multiple new income sources to enhance the property’s financial performance. These include utility bill-backs, which allow us to allocate utility costs to tenants, rental fees for garage spaces, and income from internet services. Together, these additions strengthen our revenue and improve the property’s overall stability.

While we recognize there is still work to be done to ensure smooth operations and meet our residents’ needs, we remain optimistic about the future. Our team's dedication to ongoing improvements and tenant satisfaction positions us for continued success. We look forward to sharing more updates soon.

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