We are proud of the long tenure of so many team members. Everyone at our home office has served for at least five years, some for over ten years!
On site many of the team, approximately 25%, have over three years, several over five years and one who has been with us since we opened our doors.
Congratulations to the 2013 Distinguished Service Award Recipients!
DEL has recognized the following top leaders.
Featured Property: The Reserve At Lakeshore
The Reserve at Lakeshore is a 240 unit apartment community located in Chattanooga, TN that was constructed in several stages from the 1950's to 1978. It is located on 23 acres that over look Lake Chickamauga and afford over 75% of the apartment homes outstanding waterfront views. The property was purchased based on its income and expenses that were in place at the time of acquisition. Management believed that due to prior ownership allowing the asset to fall into disrepair and not effectively control expenses, there was a significant opportunity to create value through renovating and repositioning the asset.
Upon acquisition, a new onsite management team was installed and renovations to the community commenced. The exterior was completely repainted, all damaged stucco was repaired, all wood that was damaged or deteriorated was replaced as were several roofs. Other improvements included the complete renovation of a large commercial building on the site that houses the community offices, fitness center, business center, laundry facilities and a restaurant space that is leased to a competent operator.
Landscaping improvements included the removal and trimming of vegetation that had grown over the years to obstruct many of the waterfront views. Additionally, over 90% of the base planting at the buildings was removed and new landscaping was installed. Mail boxes that were in disrepair were removed from each breezeway and replace by a new central mail kiosk. The pool area was completely redone to include rebuilding of the circulatory system to eliminate a major long term water leak, replastering of the pool, new water line tiles, coping stones and the installation of a new gazebo.
Interior improvements are an ongoing project that continues to this day. Initially, all apartments had their outdated wallpaper removed and were retextured, repainted, light fixtures replaced, cabinets refinished and counters, vinyl and appliances replaced as needed. Continuing improvements have included the replacement of carpet and the installation of ceramic tile floors.
These improvements to the physical asset were matched by the high quality of customer services delivered by its experienced and dedicated onsite team. Whereas the previous ownership self managed the property with the assistance of family members and long term contractor relationships, the professional management installed after acquisition brought a fresh approach to quality control, cost management and customer service. Although many of the existing residents were unable to afford the new rent structure, the effective marketing campaign attracted residents who could.
When the property was purchased, the prior year NOI was $542,284. The renovation was completed in two years and at the end of year three, the NOI was $1,003,102. Income had risen 83% and expenses dropped from 66% of gross income to 48%.
Thirty Two months after acquisition, the property was refinanced. The partnership borrowed $9,700,000and returned 100% of the initial equity investment. To date the property continues to perform well above its initial expectations and enjoys the reputation as one of the finest apartment communities in Chattanooga. For more information on this community, please visit the property's website at www.reserveatlakeshore.com.