One broker shared a rumor about a major medical devices company building a new plant in upstate South Carolina. He was in touch with city officials and said it was a done deal but not yet announced. We had several properties already on our radar in this area and decided to move forward with this one— a 32-unit 17-year-old apartment complex, well maintained but dated.

The buildings were solid and attractive, but the interiors were dated. We saw this as an opportunity to create a more comfortable, modern community for the increasingly professional workforce moving to the area.

This area was already known as a manufacturing magnet because the workforce was competent, the land was available, and local laws and regulations favored growth. It was a good opportunity, even without the new plant, but shortly into our due diligence, the new manufacturing plant was announced — a 1-2 year development project and over 1,000 new jobs.

Our team completed the acquisition in early 2018 and continues to improve the units. A recent broker valuation of the property validates our efforts are paying off.

Learnings:

• Undesirable tenants impact their neighbors. Good tenants moving out often don’t say why they’re moving, but when their bad neighbor moves, they will tell you they’re glad.
• Property manager systems are critical to their success. Be sure to ask how they market their properties and how they track and report financial results. Work with them if they need help because systems can be improved.
• Water can be your worst enemy. Fix leaks, condensation, gutters, downspouts, and drainage — right away.