- 32
- Units
- Anderson, SC
- Location
- 2018
- Acquired
- 3 years
- Hold Period
- 18%
- Average Annual Return
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 already had several properties on our radar in the area and decided to move forward with this one — a 32-unit, 17-year-old complex, well maintained but dated.
The buildings were solid and attractive, but the interiors were dated. We saw an opportunity to create a more comfortable, modern community for the increasingly professional workforce moving to the area.
The area was already a manufacturing magnet — a competent workforce, available land, and laws and regulations that favored growth. It was a good opportunity even without the new plant, but shortly into due diligence, the plant was announced: a one-to-two-year project and over 1,000 new jobs.
Our team completed the acquisition in early 2018 and continued to improve the units. Broker valuations validated that our efforts were paying off.
What we learned
- Undesirable tenants impact their neighbors. Good tenants often don’t say why they’re leaving, but when a bad neighbor moves out, they’ll tell you they’re glad.
- Property-manager systems are critical. Ask how they market properties and how they track and report financials, and help them improve those systems.
- Water can be your worst enemy. Fix leaks, condensation, gutters, downspouts, and drainage right away.