The new package also helps Home compete with newer construction. “We completely changed our finish package,” Knight says. “We used oak and white in the past. Now, we’re using maple and silver appliances. With our newer renovations with upgraded appliances and cabinets and floors and baths and brushed nickel, it’s extremely similar to new development and a more contemporary package.”
Village Park of Rochester Hill
The Village Park of Rochester Hills may be near hard-hit Detroit, but its suburb has a lot going for it—namely, Fiat bought Chrysler and the local Beaumont Hospital complex expanded. That’s why Farmington Hills, Mich.–based Village Green Cos. felt comfortable doing a total repositioning that included the interiors of the units as well as the fitness center, pool deck, clubhouse, laundry room, and even the chimneys. “We’re basically changing the income or the demographics of the customer,” says Jonathan Holtzman, chairman and CEO of Village Green. “Under our repositioning, we’re changing from gray collar and blue collar to white collar. We can also change the average age and the average income.”
Location: Rochester Hills, Mich.
Company: Village Green Cos.
Number of units: 368
Amount invested per unit: $1,000 (a prior renovation was $12,000 per unit)
Rent increase per unit: $30-$45
Pre-rehab occupancy: Low 90s (%)
Post-rehab occupancy: 95%
Scope of rehab: Bathrooms, kitchen, appliances, fitness center, pool deck, clubhouse, laundry room, chimneys, and landscaping
Houston-based REIT Camden Property Trust, which renovated 248 units last year, shoots for a target renovation package just below new construction. It’s also revamped its renovation program by offering two packages. One provides a Class A–style upgrade with stainless steel appliances, granite countertops, and all new cabinetry. The package also has an upgraded carpet and new window blinds, plumbing, paint, and light fixtures. The second renovation package Camden offers is a Class B upgrade with a choice of either white or black appliances, laminate countertops, resurfaced or painted cabinets, and new paint. Both packages include updated light fixtures, plumbing fixtures, and window coverings.
