Completing the existing renovation program to unit interiors can increase rental rates by ~$120 and produce a renovation ROI of ~35%. Currently, only 16% of units in the portfolio have received upgrades, leaving a majority of the upside for new ownership.
Renovated, 1995/2000 Product Below Replacement Costs
Built in 1995 and 2000 respectively, Plantation and Grove at Gulfport feature tremendous designs from both an aesthetic and operational standpoint. The assets are well-maintained, and Grove at Gulfport specifically has received over $2.3 million in exterior renovations over the last three years including full hardi-plank siding.
Outstanding 2020 Performance
Collectively, the assets averaged over 92% economic occupancy for 2020, and posted YoY total income growth of 5.3% in December 2020.
Superb Central Locations
Located approximately 1/2 mile from each other, both assets benefit from locations central to Gulfport-Biloxi’s primary demand drivers. Close proximity also allows for economies of scale and property management efficiency.
Strong Market Fundamentals
The Gulfport-Biloxi-Pascagoula market performed well throughout 2020. Occupancy held steady in the 95-96% range, and the Q4 YoY effective rent growth for the market was 3.88%.