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