Oak Residences, a 132 Unit multifamily property, in Lowell, MA was sold by Millenium Holding Group (MHG) in August of 2022 to DSF Advisors for $25.9 Million.
The property was built in the 1980s and managed by the original developer until 2021. It is located in the Drum Hill area of Lowell that has seen strong rental demand in recent years. MHG purchased the property with the strategic vision to add significant value through unit renovations, deferred maintenance updates, and lease modernization.
CP Management (CP), based in Exeter, NH, was chosen as the property manager prior to closing and immediately set out to enact MHG’s vision. Plans were created to renovate a significant portion of units with granite countertops, new appliances, kitchen cabinets, and LVT flooring among other updates. When a unit vacated, CP would oversee a team of subcontractors and assist with their own maintenance team to ensure that units were upgraded to MHG’s specifications as quickly as possible. Renovated units saw rent growth of 25%+.
Outside of the units, CP oversaw multiple updates to the common areas and structures to counteract deferred maintenance. This included but was not limited to boiler replacements, fire panels upgrades, laundry room modernization, and common area carpeting refreshes.
Lease modernization was also a key strategic goal. When the property was purchased all 132 tenants were on outdated month to month leases and there was no digital rent roll or formal financials. CP enacted a transition plan wherein tenants were offered multiple lease term/rate options. Within months of ownership, 100% of tenants were on 6 month or longer terms, with 90%+ on annual leases. This transition greatly increased the security of the net operating income and therefore the interest from large institutional buyers.
After about 13 months of ownership the property was sold for a 50%+ Internal Rate of Return. CP is excited for MHG and their investors, and they hope to work together again soon.
CP Management is a third party property firm based in Exeter, NH with additional offices in Manchester, NH, Portsmouth, NH and Providence, RI. Their portfolio under management includes approximately 4 million square feet of commercial space and 2,500 housing units, made up of both condominiums and multifamily apartments. To learn more about how CP Management might be able to help you with your property needs, visit www.cpmanagement.com or email firstname.lastname@example.org.
MHG is a real estate investment firm headquartered in Lowell, MA. Their focus is on finding and acquiring large ($3M+) value-add multi-family real estate. Their mission is to unlock value while protecting and growing their investment partner capital. They look to generate strong returns by investing in stable and cash flowing assets. Visit https://millenniumhg.wordpress.com/ to learn more.