New Standard Equities’ Renovation Pays Off

Atlas Apartment Homes has 276 units located at 1800 Sidney Ave. in Port Orchard, WA on the Kitsap Peninsula west of Seattle. New Standard Equities (NSE) recently completed disposition of this garden-style property after successfully implementing a business plan for the past 4.5 years. At $75.2 million, NSE sold this asset at a price that was 39 percent higher than initially projected during the underwriting process.

“After executing our comprehensive business plan which included exterior improvements, branding initiatives, extensive renovation of the leasing office, clubhouse and fitness center, and renovations to 90 percent of the unit interiors, we felt that now was a good time to monetize, given the opportunity for the next owner to finish our renovation program or expand upon it,” says Timothy Walters, NSE’s chief investment officer.

NSE implemented a strategic renovation plan that optimized rental rates while actively monitoring demand and residents’ willingness to pay for property upgrades. By enhancing the property’s curb appeal with new signage, asphalt and facade treatments, NSE was able to attract a more discerning renter. When combined with unit interior improvements, the firm subsequently improved average asking rent by 34 percent and the average in-place rent by 37 percent.