JANUARY 04, 2023
College Station, Texas – Jeronimo Hirschfeld, President and CEO of One Real Estate Investment (OREI), announced the sale of a 192-unit apartment community.
The Element at University Park was acquired by OREI in May 2020 after the completion of a comprehensive marketing process. Through a solid reputation and certainty of execution, OREI replaced the previous buyer, who was unable to raise equity for the deal, and was awarded the deal as the new buyer. Upon takeover in the midst of the COVID-19 pandemic, OREI completed numerous upgrades at the property including the addition of a sand volleyball court and basketball court, tennis court upgrades, landscaping enhancements, and an outdoor kitchen renovation amongst others. In addition to exterior upgrades, select units received upgrades including stainless steel appliances, kitchen tile backsplash, upgraded flooring, a paint color change, as well as the installment of smart thermostats. With the implementation of revenue management software, OREI was able to grow average in place rents by 15% over a 32 month hold period.
In parallel with the completion of all planned exterior capital improvements and substantial operating performance, OREI assessed the property was in a position to be brought to market with brokerage firm Newmark. Through an extensive marketing campaign, the terms of a sale agreement were reached in late Q3 2022. The Element at University Park officially transacted on December 28th, 2022.
“The Element at University Park is an attestation of OREI’s ability to reposition an asset in the midst of turbulent conditions and yield sizable risk-adjusted returns to our investors” stated Hirschfeld. “Transforming the asset from predominantly student housing to only a minority student population added value to the asset and resulted in strong returns to our investors.”