BELIEVE IN DOING THE RIGHT THING.
STUDENT HOUSING BUSINESS 2014 INNOVATOR AWARDS
Best Renovation of Existing Project MINT URBAN | RED RIVER - AUSTIN, TX
BY CARDINAL GROUP MANAGMENT
background . THE PROPERTY
THE MARKET The Property is located in the North Campus neighborhood just north of the University of Texas at Austin (“UT”) campus. North Campus is popular with students but, unlike the West Campus neighborhood that is mostly populated by undergraduate students looking for a “party” environment, this neighborhood is quieter and attracts more upperclassmen, graduate students and young professionals who are not ready to give up on the attractive location close to campus and the social scene is affords. The neighborhood offers residents easy access to the UT campus and to the retail, restaurants and bars along the major commercial area known as “The Drag” or Guadalupe Street, a north-south arterial street that sits along the west side of campus.
THE PROPERTY Mint Urban | Red River is a 138 unit apartment community located in Austin, TX built in 1977. Cardinal Groupâ€™s turnaround plan focused on controlling expenses and making targeted capital improvements that could result in significant rent growth. The value-add plan called for more than $2.5 million in capital improvements to unit interiors, common areas, building amenities, and infrastructure. When purchased, the buildings were in a state of disrepair and had not been updated or maintained properly for years. The team took them back to the existing walls, completely renovating every aspect of the building inside and out. Unforeseen conditions, environmental issues, structural issues, and mechanical issues were commonplace on the project and the team had to overcome all of these to still deliver a successful project on time and budget. The project delivered with no significant time delays, was ready in time for the 2013 summer move-ins, and was 3% under budget.
THE TEAM Owner: Cardinal Group Investments Construction Manager: Cardinal Group Management Architect: 2WR Interior Designer: Mandil, Inc. Contractor: Lakota Construction
renovation HOW WE SPENT THE MONEY / INTERIOR UNIT IMPROVEMENTS / AMENITY IMPROVEMENTS
How We Spent the Money $2.5M had to go an incredibly long way!
Timeline / Schedule Overview Cardinal Purchase
Avg. rent: $945/unit Property value: $11 MM occupancy: 81%
Avg. rent: $1,075/unit Property value: $16 MM occupancy: 99%
Breathing Life Back Into Vintage Units COMPLETE TRANSFORMATION – TURNING DATED APARTMENTS INTO MODERN, SOPHISTICATED UNITS, WORTHY OF THE MINT URBAN BRAND.
The existing units had not been touched in over 20-30 years. They had the original and mostly damaged wood cabinets and counters, dated, dirty and stained carpet throughout, original 1970’s vanities, yellowed walls from years of neglect, original plumbing and light fixtures and the majority of the original 1970’s appliances. In short, the unit finishes were unusable and had to go.
Following a complete demolition of everything except the walls, the units received LVT wood flooring, new paint, new stainless steel appliances, completely new kitchens and baths, new light and plumbing fixtures, and new carpet in the bedrooms.
NEW FLOORING, KITCHENS, BATHROOMS, APPLIANCES, LIGHTING, PAINT, PLUMBING, FURNISHINGS, WINDOW COVERINGS
AMENITY IMPROVEMENTS EXISTING CONDITIONS The only existing amenity, the pool, had not been touched in years. It was an unused, cold, and uninviting space. The Mint Urban brand centers around a certain lifestyle component that we strive to create at our communities – The team had their work cut out for them!
AMENITIES ADDED CLUBHOUSE/LEASING OFFICE • New Lobby & Clubhouse with complimentary WiFi • Computer bar with iMac computers • Wireless printing • Complimentary coffee and snack bar GAME COURTYARD • Brand new outdoor furnishings • Landscaping and evening lighting • New trellises • Custom concrete beer pong and ping pong tables
AMENITIES IMPROVED POOL AREA • Overhauled resort-style pool • Stainless steel grilling island • Private cabanas & fire pit lounge • Outdoor theater with 3 flat-screen TVs LAUNDRY ROOM • New paint and lighting • New counter spaces • New equipment with digital payment and notification
after Clubhouse/Cyber lounge
Outdoor tvs outdoor grilling island
Private poolside cabanas
New outdoor furnishings
Following the renovations, the team was able to achieve a 106% increase in rent and is now 98% occupied.
Following the stabilization the team was able to achieve an 86% increase in total asset value.
Think current , hip, sophistication . COMMUNITY LIFESTYLE
The property was rebranded with a new identity under the teamâ€™s urban platform Mint Urban, highly amenitized spaces, best in class marketing materials and a management overhaul make this a truly unique multi-family experience.
While the Hale neighborhood has not yet redeveloped as extensively as some other urban neighborhoods, it is directly in the path of future growth. The Property will set itself apart by providing a combination of stylishly designed buildings and perhaps the best amenity suite of any urban property in the market.
ABOUT US MANAGEMENT
Cardinal Group Management (“CGM”) is a full service real estate management firm. CGM has a specialized platform that allows them to handle all facets of real estate management throughout the United States. This includes: entitlement, development, construction management, property management, accounting, and creative leasing & marketing. CGM leverages their culture, unique company structure and high regard of technology to deliver superior results and reporting to its clients.
Cardinal Group Investments (“CGI”) is a real estate investment and asset management firm specializing in opportunistic and value-added investments throughout the United States. CGI combines a highly analytical approach with thorough research and reporting systems to deliver results and transparency to its investors and clients.
Cardinal Group is headquartered in Denver, CO and has an office in San Francisco, CA. The Company owns and manages student housing and conventional multi-family portfolios around the country. As well as advises on a $3 billion mixed-use urban redevelopment in Denver, CO.
For more information
ANDREW GLADDEN, VICE PRESIDENT OF DEVELOPMENT CARDINAL GROUP MANAGEMENT, LLC (303) 407-4507 ANDREW@CARDINALGROUP.COM