This week we crossed the 1 month mark since our acquisition of the 71 unit Morada Apartments (formerly The Barcelona). Since then, the 5 vacant units have now been renovated and leased up. In fact, 3 of those units are occupied already. Many of these quick move-ins are by legacy tenants who opted to upgrade to renovated apartments. Our ability to quickly fill these units is a testament to a great leasing agent and our renovations turning out beautifully.
Our renovation scope has evolved since last year’s Riverway Champlin project. This time, we decided to hire a designer who is well-versed in value-add multifamily. The result has been twofold, this year’s renovations are more attractive than previously, and with some tricks of the trade, we can complete them cheaper as well. Let’s dig into the latest evolution of our renovation scope:
Kitchen
Kitchen cabinets: We always opt for plywood cabinets, not particle board. Note how the center cabinets are “bumped” 6 inches taller than the others. This offers a much better look and only costs slightly more.
Granite countertops: Granite not only looks better but will last longer than laminate countertops. Our countertops on this project are the thinner 2cm variety, but the edges have been stacked, making the countertops look thicker.
Stainless appliances: We still like stainless, and our residents do too. If you don’t already have a microwave installed over the stove, pay an electrician to add a circuit. Nobody wants a microwave taking up valuable countertop space.
Faucet: Don’t skimp on the kitchen faucet! Potential renters see this immediately when they first walk into the unit.
Backsplash: A tile backsplash would be a plus, but we think this is a good place to save money. When you are renovating 71 units, $600 backsplashes add up quickly. A granite backsplash looks almost as nice and costs far less.
Bathroom
Tile: Reuse the bathroom tile if you can. Luckily we get to reuse all the existing tile at The Morada. If the original tile is 70s’s pink or yellow, we demo it and the drywall behind it. Then we install new green rock and a new shower surround using large 24” tiles. We avoid “reglazing” the old tile, as it creates a regular maintenance item.
Bathroom Vanity: The bathroom vanity was ordered at the same time as the kitchen cabinets. This allows us to match the wood finish on both perfectly.
Light & Mirror: The old bathroom mirrors were too short. To accommodate a taller mirror, we pay an electrician to raise the electrical box up 12”. This is true for just about every 60’s and 70’s buildings we come across.
Flooring: Use the same LVP (Luxury Vinyl Planking) here as was used in the living room. Make sure it’s rated for wet conditions.
Toilets: Low-flow toilets are a must-have to reduce the water bill. This time around, we opted for dual-flush toilets for additional water conservation.
Apartment
Flooring: Click-together LVP (Luxury Vinyl Planking) is our preference. It provides a more uniform appearance and a better feel than the glue-down variety. Note: the grey hardwood trend is officially over as of 2024.
Doors: We reuse the existing doors 95% of the time. Any damaged areas are smoothed over using Bondo, then the door is primed and painted. We only install new doors if the old one is damaged beyond repair.
Paint: White trim and neutral walls will always remain popular. Match the radiators to the wall color to blend them into the wall.
Trim: We almost always reuse the trim around the doors. We do pull the old baseboard trim and replace it with pre-finished rectangular trim.
Outlets and switches: This is a new method for 2024; we are hitting the old ivory outlets and switches with a light coat of white oil-based spray paint. We then install a new white cover plate. We have replaced the receptacles in the past, but this requires pulling a permit, which we’d like to avoid at all costs.
Closet Organizers: Our hallway closets are each getting new Rubbermaid closet organizers installed. Bedroom closets reuse the existing hanger rod and shelf.
Final Thoughts
That sums up the renovation scope we are using in 2024. We are extremely happy with how the apartments came out and hope you like it as well. Watch for future updates on our ongoing improvements at The Morada. Next, we’ll be focusing on the common areas and entryways.
Market News
Blackstone Making $10 Billion Multifamily Purchase, Going on the Real Estate Offensive
Blackstone has agreed to acquire an owner of upscale apartment buildings for about $10 billion, signaling that one of the world’s largest real-estate investors is ramping up investments again after a period of moving more cautiously.
Wall Street Journal. (2024, April 8). "Blackstone Making $10 Billion Multifamily Purchase, Going on the Real Estate Offensive" https://www.wsj.com/real-estate/blackstone-making-10-billion-multifamily-purchase-going-on-the-real-estate-offensive-f3126928
Tips & Tricks
Terms:
Luxury Vinyl Planking (LVP): LVP is made from multiple layers of PVC vinyl and fiberglass. The top layer contains a printed design that mimics the look of real wood, followed by several layers of different densities to give it cushion and durability. LVP also has an attached backing layer that makes installation easier than traditional hardwood flooring, with interlocking LVP planks being able to be glued directly onto your subfloor or floated with minimal fasteners.
Dual Flush Toilet: A dual flush toilet is a variation of the flush toilet that uses two buttons or a handle mechanism to flush different amounts of water. The purpose of this mechanism is to reduce the volume of water used to flush different types of waste. The design takes advantage of the fact that liquid waste requires a lesser amount of water to flush than solid waste.