At Wheelhouse Construction we often mention that we offer more than just quality renovation services; we are also partners with our clients and assist them in formulating the most effective upgrade strategy to maximize the return on investment (ROI) of every project. We help owners determine the level of work that needs to be completed to achieve their financial objective. The sweet spot lies at the intersection of target demographic, maximum achievable rents for the neighborhood, surrounding competition, project budget, and investment horizon. An example of this successful formula is evidenced by a project that Wheelhouse Construction completed in 2015 in the Whittier neighborhood in Denver. The apartments were built in 1953 and contained 16, 520 square foot one-bedroom, one-bath units. The building had never undergone any significant renovation in its history.
After several meetings with the prospective buyers prior to purchase, it was determined that due to the location of the property – near City Park, downtown, and the new St. Joseph’s Hospital complex- that the property would be ripe for a large-scale renovation. Wheelhouse Construction was able to create a preliminary project budget that provided the purchasers the comfort they required to proceed with the transaction and plan.
As soon as the transaction closed Wheelhouse Construction was ready to commence construction. The units received new kitchens, baths, flooring, electrical fixtures, doors and trim, windows, and texture and paint; the plumbing lines, electrical wiring and most drywall was left intact. A new HVAC system was installed, the laundry room was remodeled and the entire property landscaped.
The property manager began pre-leasing the new units prior to the end of renovations and all of the units were re-leased within two months of project completion. Incredibly, the new units garnered rents and additional income of over two and a half times the original rent roll! Now, just over two years since the original purchase, the building is under contract to sell, which will yield an 85.62% increase over the original project cost (purchase + renovation).
Over 85% Increase in Property Value and 258% Increase in Rents
Wheelhouse Construction has performed apartment building remodels of nearly every scale; from simple “lipstick” projects to full-blown renovations. We can tackle units one-at-at-time, or remodel the entire building once it is vacated. Whatever your needs may be, we can help you formulate a plan that meets your budget expectations and financial goals. Please call or email us to discuss a strategy for your project.
