Daniel Hertzberg
Bell Park Central
Dallas
Owner: Bell Partners, Greensboro, N.C. Selected renovations: Fitness center; outdoor kitchen; pet park; landscaping; paint Project cost: $3 million Investment per unit: $5,970 Rent increase per unit: $62 Rents after rehab: $864 to $1,849 Pre-rehab occupancy: 93% Post-rehab occupancy: 94% Target ROI: 28% for the interior-unit renovations
The Situation: When Bell Partners bought Ansley at Park Central in 2011, the 490-unit property wasn’t hurting for amenities, thanks to its two resort-style swimming pools, media room, and fitness center. But it wasn’t living up to its financial or operational potential. “At acquisition, the property’s rents were well below market, and there were opportunities to capture other income, such as trash and fees,” says Emily Moore-Pleasant, an asset manager at Bell. “The property was tired and had a tremendous amount of deferred capital [improvements], delinquency [problems], and issues with the tenant profile, and dying or nonexistent landscaping,” says Moore-Pleasant, who also remembers garbage-strewn breezeways and pet-waste issues. “It was generally in need of a lot of love.”
The Decision: Bell wanted its new acquisition, which it named Bell Park Central, to capture upscale renters looking for a different floor plan (the property has garden, townhouse, and mid-rise apartment units) and convenient access to jobs in nearby Medical City, ÂUptown, or Dallas’ central business district. So it invested $3 million in common-area and in-unit upgrades, gutting the clubhouses and transforming them into a 24-hour fitness center, resident lounges, and leasing/management offices. Bell added an outdoor kitchen and fire pit. The company also addressed the pet problems at the property by adding a pet park and renovating a laundry room into a dog wash after installing washers and dryers in the apartment units.
The Result: Monthly rents have climbed by $62 per unit at Bell Park Central, which is solidly within Bell’s Âexpectations for post-rehab rent growth for such an acquisition.