UNIT RENOVATIONS AT RIVERBEND APARTMENTS
In early 2022, California-based Turnstone Capital purchased a 77 unit apartment complex from Draper Property Management for $11.3M, their first purchase in the Colorado Springs market. The property, Royal Lani Apartments (now known as Riverbend Apartments), is a three story multi-family complex with (18) 548sqft. one by ones and (59) 854sqft. two by ones.
A STRUGGLING PROPERTY
Riverbend Apartments, a centrally-located property near downtown Colorado Springs is a short drive from The Powers Corridor, Colorado Springs Airport, and The Broadmoor Hotel. While the location was great, the property was rough around the edges needing major exterior improvements along with unit renovations throughout. While some work had been done by previous property owners including new windows, gates, and roof repairs, Turnstone knew a major renovation was in order to help boost tenancy rates and improve the value of the newly-purchased asset.
“When we first looked at these units, they were essentially held together by caulk and spackle.”
– Andrew Hoogeboom, Project Superintendent
MORE THAN A FRESH COAT OF PAINT
Repairs and Drywall – Some first floor units were completely repaired due to termite damage. Damaged and cracking drywall was replaced. Tubs in bathrooms resurfaced. Plumbing repaired where necessary.
Cabinets – Fresh coat of paint on doors, fronts, and boxes plus new hardware in kitchens. New vanity with top in bathrooms.
Counters and Backsplash – New stone/solid surface counters with sink cutout in kitchens along with subway tile backsplashes.
Paint – Fresh coat of paint on walls, ceilings, and trim in units and common space.
Flooring – New carpet and carpet pad in bedrooms. New LVT sheet vinyl flooring everywhere else. Quarter round installed throughout the units.
Electrical – Along with updating some broken outlets, covers, and smoke detectors, new GFCIs were added to the bathroom and kitchen. Additionally, dated light fixtures were updated to new LED fixtures.
LIVING ROOM
Upon entering many units, it was clear to tell that the entire complex was due for some TLC. Many door frames were beginning to split and rot making it difficult to close and latch doors. Almost every unit we walked had drywall damage including holes, cracks, and water damage. The baseboards were poorly installed, mismatched, and worn. Many units had mixed material flooring that was ready to be replaced.
One of the biggest problems: Termites. Many of the first floor units had major termite damage which would require pest mitigation and rebuilding of most of the unit from studs up.
BEDROOMS
In the bedrooms, nearly destroyed blinds could be found on almost every window. Shoddy paint covered the walls with signs of peeling throughout. Dated lighting fixtures provided hardly any light making bedrooms feel dark and cramped. Outlets and wall coverings were cracked and fading.
BATHROOMS
The bathrooms in many units were almost completely unusable with cloudy or cracked mirrors, broken toilets, stained tubs, and leaking sinks. The work that had been done to maintain the bathrooms over the years was shoddy.
THE RESULTS
When Turnstone first purchased the property in January, Royal Lani was a last-chance property with low monthly rents and no safety deposit. The property underwent a major rebranding including a name change to Riverbend. Exterior improvements were completed and Global Construction renovated common spaces and 58 units throughout 2022. The property is no longer a last chance apartment and 2 bedroom rents are starting at $1100/mo. After a complete turnover of tenants over the course of the year, vacancies are falling as new renters sign long-term leases in the refreshed apartment.
LOOKING FOR A GC FOR YOUR NEXT PROJECT?
At Global Construction, our motto is “Improving Assets. Enhancing Lives.” This means that not only are we trying to help the ownership group improve their properties, but also improve the lives of the tenants living at the properties we work on. Riverbend is a perfect example of this motto coming to life. Not only were we able to increase the ROI of a property, but we were able to transform the insides of the apartments from worn down to refreshed, enhancing the quality of life for the tenants involved.