SHB Best Renovation of Existing Project

SHB INNOVATOR AWARDS 2020

Best Renovation of Existing Project | The Wilde M A N AG E M E N T

THE COMMUNIT Y The Wilde is a 600 bed community located in Raleigh, NC, built in 1996. The community offers 2-, 3-, and 4-bedroom apartments. Amenities include a large resort-style pool, private shuttle to campus, a large fitness center, study rooms a volleyball court, and many others. The value-add plan called for $3.1 million in capital improvements to unit interiors, amenity areas, and green initiatives.

THE TEAM Owner: Cardinal Group Investments Construction Manager: Highside Construction Contractors: ANJ Kitchens, Interspace Living NY Interior Designer: 2WR of Colorado

THE BUDGET The Budget: $3.1 million Actual Spend: $2.9 million The project is on track to be 7% under budget!

HOW WE SPENT THE MONEY SOFT COSTS 14%

GREEN INITIATIVES 18%

AMENITIES 7%

DEFERRED MAINTENANCE 7%

UNIT RENOVATIONS 54%

THE TIMELINE AMENITY / DEFERRED MAINTENACE

MAY 2019

JUN 2019

UNIT RENOVATIONS PHASE 1

JUL 2019

AUG 2019

UNIT RENOVATIONS PHASE 2

MAY 2020

JUN 2020

JUL 2020

AUG 2020

SUSTAINABILITY UPGRADES

SEP 2019

OCT 2019

NOV 2019

DEC 2019

JAN 2020

FEB 2020

MAR 2020

APR 2020

IN UNIT RENOVATIONS 145 total units received renovations. A total of $10,850 was spent on a per unit basis during the renovations. With these funds each unit received quartz countertops, stainless steel appliances, refaced cabinets with new hardware, new furniture, new designer paint scheme, new faucets in kitchen and bathrooms, and new lighting throughout.

The results helped pull the units out of the 90’s, increased leasing velocity, and increased rental rates.

IN UNIT RENOVATIONS New quartz countertops New stainless appliances Refaced cabinetry New furniture New 49� TVs New designer paint scheme New lighting throughout New faucets

BEFORE & AFTER

BEFORE & AFTER

BEFORE & AFTER

BEFORE & AFTER

BEFORE & AFTER

BEFORE & AFTER

GREEN INITIATIVES The Wilde was built in the mid 1990’s with far less efficient fixtures than we have available today. Utilities are paid for by the community rather than the resident. This created an opportunity to both help save our planet and drastically reduce utility expenses to the community. These changes are projected to drastically affect the bottom line of the asset.

GREEN INITIATIVES HVAC replacements and high-efficiency treatment upgrades Smart Wi-Fi connected programmable thermostats Low flow showerheads and aerators Low flow toilets LED lighting upgrades

THE RESULTS

THE RESULTS

9% EFFECTIVE RENTAL RATES ARE UP 9% YEAR OVER YEAR.

THE RESULTS

24% 1/31/19

PRE-LEASING

31.5% 1/31/20

THE RESULTS

11% INCREASE IN PROSPECT PERCEPTION OF UNITS AS EVIDENCED BY J TURNER’S PROPERT Y INDEX SCORE.

PROSPECT PERCEPTION

THE RESULTS

41% REDUCTION IN CONCESSIONS

CONCESSION REDUCTION

THE RESULTS

NOI

11.6%

10.5%

EFFECTIVE RENTAL RATES INCREASED IN 2019

EFFECTIVE RENTAL RATES ARE PROJECTED TO INCREASE ANOTHER 10.5% IN 2020

THE RESULTS

4.4% NOI INCREASE

NOI

$153,357 PROJECTED ANNUAL SAVINGS FROM GREEN INITIATIVES

M A N AG E M E N T

ABOUT US

MANAGEMENT A culture-based company that attracts top talent, Cardinal Group is a fully-integrated real estate investment, management, construction, development, and marketing firm specializing in multifamily investments throughout the United States. CGM leverages their culture, unique company structure, accountability, focus on top-line revenue and high regard of technology to deliver superior results and reporting to its clients.

PORTFOLIO Cardinal Group Management oversees a portfolio of 61,000+ student housing beds as well as a portfolio of conventional multi-family housing around the country. In 2020 CGM was ranked as the second largest third party operator of student housing in the country by Student Housing Business magazine.

ABOUT US

Highside Construction handles design and construction management across the nation. The team is comprised of professionals with experience totaling more than 250 projects and $10 billion in construction and real estate-related due diligence. Highside also takes a uniquely integrated approach by working in close coordination with the acquisitions and operations teams to ensure a seamless transition from the business plan, to construction, to stabilization. Aside from the daily management and oversight of the design, construction and project consultants, the Highside is involved in the upfront due diligence and underwriting process, as well as long-term capital planning and budgeting.

C O N TAC T U S

FOR MORE INFORMATION, CONTACT: RYAN SUNDLING, Senior Group Marketing Manager Cardinal Group Management Ryan.Sundling@CardinalGroup.com