Class-B Multifamily Apartment Community

Memphis, TN

THE BRIEF

PMG took over the asset management of a small, 76-unit multifamily apartment community in a remote (rural) submarket of Memphis, where the competing home-buying market, due to government incentives allowing for small down payments, threatened the rental market. Our objective was to maximize rents in this competitive market, retain 95%+ occupancy, resolve the “fish-bowl” landscape that succumbed to flooding with every rainstorm, causing high repairs and expenses and unhappy residents, while meeting financial return expectations of ownership for a 10% cash-on-cash return for 4+ years and exit the property with a 2x multiple.

 

THE APPROACH

  1. Train onsite maintenance to provide and keep up with the PMG Monthly Maintenance Program, ensuring all physical building facilities and common areas are kept in pristine condition.
  2. Prepare and complete a cap-ex program to eliminate property flooding and improve overall site drainage.
  3. Train and encourage onsite management staff to provide a welcoming community with fun family events, attention to detail and persistent rent collection policies.

 

THE RESULTS

PMG was successful with resident retention, steadily increasing rental income over a 4-year period to outperform client’s return expectations, reducing the expense ratio year-over-year, and eliminating flooding on the property; ultimately yielding happy residents, increased value to the asset and a satisfied client.

ASSET PERFORMANCE

NET OPERATING INCOME