Value Added Management Strategy
The current ownership has managed to occupancy rather than profitability. By shifting focus towards optimizing the asset with modestly priced unit renovations and cost saving upgrades to the public spaces, we believe we will be able to generate a double-digit return on cost for unit renovations.
Streamlined Operational Cost Savings
A History of Successful Operating Results in This Market
We will once again be working with longtime partner Greystar to manage the property and capitalize on the unrealized opportunities it represents. We have a great deal of confidence in this property management team, as we have a long-standing history with them. This Albuquerque Greystar team has successfully managed four other properties for us over the last 6 years in a very profitable manner.
Because of our strong existing relationships in the area, we are able to purchase this two-story garden style apartments property at well below replacement cost.
Duke City Appeal
A Well-Established Job Market For Reliable Rent Rolls
Combined public sector and related supporting businesses account for 30 % of Albuquerque’s employment, which provides a stabilizing influence in the market (particularly during economic down cycles). Private sector employment is well-diversified and features large health and professional services employers, including Presbyterian Healthcare, Blue Cross Blue Shield of NM, and Fidelity Investments. Tech companies such as Intel, Facebook, and Netflix also have a presence in Albuquerque.
A Booming Rental Market
The Albuquerque rental market has experienced robust growth over the past 12-24 months and shows no signs of slowing down. Year-over-year, rents have increased by over 15%. Despite the strong rent growth, Albuquerque continues to be an affordable place to live. Albuquerque has long attracted new residents with its favorable economy, low cost of living, access to outdoor recreation, and artistic atmosphere.