Yonker’s Portfolio
Investment Details
Location
The Yonkers portfolio, comprising four buildings with 6 to 9 apartments each, was a strategic acquisition made during the early days of the COVID-19 pandemic. With widespread uncertainty gripping the market, we capitalized on the opportunity to acquire the portfolio at a high cap rate, positioning it for significant upside despite the challenges posed by its rent-stabilized status.
One of the key elements of our strategy was to optimize the tenant base. By strategically turning over several low-paying tenants, we introduced a stronger tenant profile, raising rents by an average of $200-$300 per unit.
On the operational side, our value-add initiatives were comprehensive. We completed renovations on six apartments, significantly improving the interiors to better align with market demand. Additionally, we addressed critical infrastructure needs by replacing one roof and installing a new, energy-efficient boiler, which helped to reduce ongoing repair and maintenance (R&M) costs. In tandem with these improvements, we refreshed the common areas with new paint, further enhancing the overall appeal of the buildings and contributing to a more inviting atmosphere for tenants.
A key driver of success in this portfolio was our enhanced management practices. By focusing on tenant satisfaction and operational efficiency, we were able to increase rent collections from 74% to an impressive 97%. This sharp improvement in collections directly contributed to the portfolio’s improved cash flow and overall performance.