Los Angeles, California | December 20, 2018
Apartment Income Investors (Aii) is pleased to announce the sale of Takara Apartments, a 77-unit apartment building located in Houston, Texas.
Aii acquired the property in May 2014 in an off-market transaction. The property is in the desirable Montrose submarket where there is a high barrier to home ownership. Aii saw the opportunity to improve property operations and increase rental rates while recognizing the value of the land due to the potential for future redevelopment.
Aii implemented a business plan to improve operational efficiency and increase rents closer to market while investigating the redevelopment opportunity. Aii improved the overall property condition and enforced the Community Rules and Guidelines to improve exterior appearance and attract high-quality tenants. At the same time, Aii explored the redevelopment opportunity and identified a joint venture partner. During this process, Aii received an unsolicited, highly attractive offer from a developer in the area.
Michael Chesser, Founder and President of Aii, said, “Takara is an example of the Aii team operating a property to its full potential while simultaneously exploring other exit strategies. Our goal, even when a redevelopment opportunity does not exist, is to create apartments where people love to live, resulting in a strong property, an improved community and profits for investors.”
Aii sold at a premium price due to the positive operations and location of the property. Along with a positive time in the real estate cycle, these conditions created an ideal situation to realize profits. For more information, also see this case study describing how the Takara investment exemplifies Aii’s investment process.
About Apartment Income Investors
Founded in 1994, Apartment Income Investors (Aii) has a proven track record of buying underperforming Class B multifamily and commercial properties and implementing renovation and repositioning strategies to improve operations and substantially increase the value of each property. This strategy has proven successful through several real estate cycles with above-average returns to investors. The company's goal is to transform homes, lives and communities while delivering superior investment returns.
For more information, please visit www.aiiproperties.com or contact Michael Chesser at 805.604.2644 | mchesser@aiiproperties.com.