Affordable Upstate | Easley Portfolio | Investor Update

Summary

Mario Brown from Affordable Upstate delivers an investor update on the Easley portfolio, highlighting growth in the area, rent premiums, and the impact of COVID-19 on renovations and cash flow. Despite challenges, Brown showcases improvements and maintenance efforts across properties, emphasizing the portfolio's strong occupancy rates and NOI exceeding projections. The update also includes a one-page breakdown for investors, comparing realized rent and distributions to proforma and discussing the bright future for the properties.

Takeaways

• 📈 Mario Brown from Affordable Upstate provides an investor update on the Easley portfolio's performance and developments in the surrounding area.
• 🏘️ Creekside Village, a new development funded by low-income housing tax credits, is located less than 20 feet from the Easley portfolio, indicating high demand for housing in the area.
• 🏢 The presence of a Class A development near Charlestown and East Terrace suggests a high-quality residential area and potential for rent premiums.
• 🚧 Challenges during COVID-19 included a moratorium on evictions, which led to non-paying residents and delayed renovations on 25 units.
• 💰 Despite the challenges, the Easley portfolio managed to achieve higher rent premiums after renovations, nearing $900 for renovated units.
• 🛠️ Maintenance and facilities management are emphasized to maintain the property's value and curb appeal, as seen in the Town Home section of Charlestown.
• 🏡 The Farmhouse of Easley is used as a benchmark, with two-bedroom units renting for $1,500, compared to $1,050 to $1,100 for similar units in the Easley portfolio.
• 📊 Occupancy rates at Charlestown are in the mid-90s, East Terrace at 91%, and Quail Ridge just below, indicating strong demand and tenant interest.
• 🔨 Quail Ridge has seen improvements with new roofs, gutters, and parking lot restrapping, despite ongoing landscaping challenges.
• 📈 NOI (Net Operating Income) for the Easley portfolio is higher than ever, exceeding former projections, indicating a positive financial performance.
• 📋 A one-pager will be provided to investors, detailing realized rent versus proforma, realized distributions versus proforma, and an assumed evaluation for transparency and investor insight.

Q & A

Who is providing the investor update in the video?

Mario Brown from Affordable Upstate is providing the investor update.

What is the purpose of the update Mario Brown is giving?

The update is to inform investors about the performance, capex, developments around the Easley portfolio, and the rent premiums achieved.

What does Mario Brown mean by 'a Stone's Throw' in the context of the Easley portfolio location?

By 'a Stone's Throw,' Mario Brown means that he is very close to the Easley portfolio, less than 20 feet away, at Creekside Village.

How was Creekside Village funded, according to Mario Brown?

Creekside Village was funded 100% with low-income housing tax credits.

What challenges did the Easley portfolio face during the COVID-19 pandemic?

The portfolio faced challenges such as the moratorium on evictions, which prevented eviction of non-paying residents, leading to a significant number of residents stopping payments for about 18 months.

How did the COVID-19 moratorium impact the renovation plans for the Easley portfolio?

The moratorium delayed the renovation of around 25 units, as it was not possible to evict non-paying residents who were occupying those units.

What actions were taken after the eviction moratorium was lifted?

After the moratorium was lifted, the Easley portfolio was able to renovate dozens of units that were previously occupied by non-paying residents and then get new residents in place.

What improvements were made to the Town Home section of Charlestown?

Improvements included enhancing the parking lot, curbing, railing, and gutters, and maintaining the property through good maintenance and facilities management.

How does the rental rate for two-bedroom units at The Farmhouse compare to the rates at Charlestown?

At The Farmhouse, two-bedroom units are charging $1,500, while at Charlestown, the rates are between $1,050 to $1,100 for two-bedroom units.

What is the current occupancy rate for East Terrace and Charlestown?

The occupancy rate for East Terrace is 91%, and for Charlestown, it is in the mid-90s.

What future plans does Mario Brown mention for the Easley portfolio properties?

Mario Brown mentions that they will include a one-pager for investors that breaks down realized rent versus proforma, realized distributions versus proforma, and an assumed evaluation to show the value of the properties.