Value-add Renovation Case Studies

Croatan often uses a value-add strategy to maximize an asset’s value. We have managed renovation projects across 13 properties with a total of 3,347 units. The program’s construction budget of $46MM and $13,703 per unit has realized a post-rehab rental rate increase of 33.1% with a return on cost of 25.9% on completed renovations.

Our renovations include curing all deferred maintenance, extensive unit interior upgrades, reconfiguration of apartment layouts, the design and build of new leasing offices and clubhouses, pool and patio areas, fitness centers, apartment building exterior improvements, landscaping, and other amenities such as dog parks, playgrounds, grilling stations, community gardens, and outdoor recreation and lounge areas.

Realized Investments

To date, the Principals at Croatan Investments have exited 15 investments totaling 18 properties and 4,148 units. These investments generated an actual gross equity multiple of 2.34x and actual gross annual IRR of 30.6%.

Past performance may not be indicative of future results. Different investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or property-made reference directly or indirectly in this material will be profitable or equal any corresponding indicated historical performance level(s). IRR and equity multiple calculations are derived from a weighted average. Gross metrics are calculated before deducting fees and other expenses. Metrics listed above are as of September 2019.  A validation report by an independent Top 20 CPA firm is available on request.

WINDSOR LANDING| CHARLOTTE,NC | 256 UNITS | Investment type: Equity

Bought: 3/30/05 // Sold: 12/19/07

HIGHLANDS AT OLDE RALEIGH| RALEIGH,NC | 172 UNITS | Investment type: Equity

Bought: 8/26/04 // Sold: 12/31/07

AUTUMN RIVER| RALEIGH,NC | 284 UNITS | Investment type: Equity

Bought: 10/20/09 // Sold: 4/8/11

FOUR PROPERTY PORTFOLIO| NC & TX | 968 UNITS | Investment type: Preferred Equity/Mezzanine

Bought: 10/31/11 // Sold: 5/17/13

AUDUBON PARC | CARY, NC | 180 UNITS | Investment type: Equity

Bought: 6/27/05 // Sold: 6/25/14

THE PRESERVE AT WOODS LAKE| GREENVILLE, SC | 232 UNITS | Investment type: Equity

Bought: 11/30/05 // Sold: 9/9/14

REAFIELD VILLAGE | CHARLOTTE, NC | 324 UNITS | Investment type: Equity

Bought: 7/26/06 // Sold: 10/27/14

GABLES COURT | PEACHTREE CITY, GA | 198 UNITS | Investment type: Equity

Bought: 6/1/06 // Recapitalized: 3/18/16

MAGNOLIA AT WHITLOCK | MARIETTA, GA | 152 UNITS | Investment type: Equity

Bought: 5/29/09 // Recapitalized: 4/29/16

THE CLARION | DECATUR, GA | 217 UNITS | Investment type: Equity

Bought: 7/15/09 // Recapitalized: 4/29/16

BLACKWOLF RUN| RALEIGH, NC | 207 UNITS | Investment type: Preferred Equity

Bought: 6/15/12 // Sold: 10/31/16

PARK PLACE | PEACHTREE CITY, GA | 198 UNITS | Investment type: Equity

Bought: 3/18/16 // Sold: 7/16/18

THE CLARION | DECATUR, GA | 217 UNITS | Investment type: Equity

Bought: 4/29/16 // Sold: 10/31/18

PARK ON CLAIRMONT | ATLANTA, GA | 217 UNITS | Investment type: Equity

Bought: 7/27/16 // Sold: 10/9/19

SPRINGHOUSE APARTMENTS | NEWPORT NEWS, VA | 432 UNITS | Investment type: Equity

Bought: 8/9/16 // Sold: 12/13/19