Value Add Case Study

Oakdale Square

Oakdale Square is a class B apartment community located in Bloomington, IN – home to Indiana University. When acquired, the property was considered a class C asset with most interior finishes being the original from 1972. After a modest, but transforming, renovation of the interiors including refinishing cabinets, new hard flooring, adding washer and dryer hookups, and updating the clubhouse, our management team was able to increase rents by over $150/m, while at the same time also reducing expenses. This targeted value add program gave a lift to NOI that, in combination of slight cap rate compression in the market, lead to a 78% increase in asset valuation.  

• Bloomington, Indiana
• 200 units
• Built in 1972
• $10.1 MM purchase price (2016)
• $5,000 / unit renovation
• $150+ / m rent increases (36% return on renovation)
• $18 MM appraisal in 2019 (NOI growth + appreciation)
• 9.8% cash on cash return
• 60% projected IRR (16.6% targeted)