Featured Success Stories

RESSCO draws on its 20+ years of experience as an owner and operator, including 19 communities representing 5,500 units and spread over three states, to improve our communities and the lives of our residents. This attention to detail and meticulous focus on tenant experience drives financial returns for investors, generating a representative round-trip IRR of 21% on almost $100 million of equity raised to-date.

Hoover Square – Warren, Michigan

  • Built 1965; 21 two/three story buildings, 342 units
  • Attractive basis relative to recent comps and below replacement cost
  • Undermanaged, with significant deferred maintenance
  • Rents, occupancy well below market
  • A relative rental housing value
  • Limited available / appropriate housing supply
  • Proximity to jobs, employment centers, transportation
  • Demographic, population growth attributes
  • High visibility, traffic counts
  • Proximity to amenities, schools, parks
  • Relative housing affordability of submarket within metropolitan region
  • Engage residents, address concerns and security, communicate a stabilization plan
  • Staffed appropriately
  • $3 million capital program competitively repositioned community
  • In-unit upgrades included updated kitchens, bathrooms and flooring
  • Common area upgrades included new windows, roofs, security
  • Leasing, marketing, systems and community outreach
  • Gross IRR/Equity Multiple = 20.2%/6.4x
  • Average Cash-on-Cash Yield = 12.8%

Utica Square – Roseville, Michigan

  • Built 1967, 22 two/three story buildings, 266 units
  • Attractive basis relative to recent comps and below replacement cost
  • Under-managed; deferred maintenance, resident satisfaction and retention
  • Rental rates below market and peers
  • A relative rental housing value within metro, providing incremental demand and pricing power potential
  • Extremely limited available/appropriate housing supply
  • High visibility and traffic counts
  • Proximity to jobs, transportation, retail
  • Densely populated
  • Demographic, population attributes
  • Affordable submarket within metro
  • $3 million capital program competitively repositioned community
  • Completed re-branding of community
  • Common area upgrades included new parking lot, replace doors and windows, paint and repair balconies and decks, and new paint and carpet in all hallways
  • In-unit upgrades included new paint, carpeting/tile, window replacement and appliances, and kitchen and bath remodels
  • Implemented disciplined leasing/marketing procedures, accounting systems and resident service initiatives
  • Gross IRR/Equity Multiple = 21.6%/4.9x
  • Average Cash-on-Cash Yield = 12.4%

Capitol Village – Lansing, Michigan

  • Built 1973, 23 1-story buildings, 230 units
  • Attractive basis relative to recent comps and below replacement cost
  • Under or mismanaged; rental rate and occupancy well below market
  • Re-capitalization
  • A relative rental and overall housing value
  • Pricing power: consistent rental demand in a market featuring limited available existing product and forecasted new supply
  • Unique neighborhood setting
  • Economic growth, diverse and high-quality economic/employment base
  • Proximity to jobs, schools, parks, retail
  • Limited comparable and competitive housing supply
  • Stable demographic, population growth
  • Relative housing affordability of submarket within metropolitan region
  • Implemented $2.5 million capital plan to reposition the Property
  • Common area capital projects included new siding and entry doors, repairing/replacing roofs, landscaping, and repairs to swimming pool and other common areas
  • In-Unit updates include remodeled kitchens and bathrooms, new flooring and fixtures
  • Utilized RESSCO’s lower cost structure to improve operating efficiencies, better manage and control costs, identify and execute needed deferred maintenance
  • Gross IRR/Equity Multiple = 24.3%/3.8x
  • Average Cash-on-Cash Yield = 12.0%

Northview Harbor – Grand Rapids, Michigan

  • Built 1967, 22 two/three story buildings, 266 units
  • Attractive basis relative to recent comps and below replacement cost
  • Below market rental rates
  • A relative rental housing value
  • Consistent rental demand and pricing power potential given limited competitive housing supply
  • Hard to replicate location, amenities and housing lifestyle
  • Economic growth, diverse and high-quality economic/employment base
  • Proximity to jobs, schools, parks
  • Limited existing and forecast competitive housing supply
  • Demographic, population growth
  • Relative housing affordability of submarket within metropolitan region
  • High visibility
  • $2.5 million capital plan to competitively reposition the Property
  • In-unit upgrades included remodeled kitchens and bathrooms, and new doors, flooring and fixtures
  • Common area/exterior refurbishments included clubhouse/amenities, siding enhancements, parking lot and landscaping
  • Utilized RESSCO’s lower cost structure and full-service platform to lower operating expenses
  • Gross IRR/Equity Multiple = 24.0%/3.5x
  • Average Cash-on-Cash Yield = 7.0%

SEMP Portfolio – Southeast Michigan, Michigan

  • 4 assets located in Southeast Michigan
  • Build years for the 4 assets range from 1965 – 1971 with unit count ranging from 168 – 376 units
  • Opportunity to decrease operating expenses while adding value by increasing rents to market rate
  • Through cosmetic refurbishment of individual units and the property exteriors management can increase rents and occupancy
  • Assets near large employers and universities/colleges
  • All properties close to high-demand retail areas, driving demand for the units
  • Limited existing and forecasted comparable and competitive housing supply
  • Strong demographics, population growth
  • Relative housing affordability of submarket within metropolitan region
  • High visibility
  • $6.5 million capital plan to competitively reposition the Properties
  • Cosmetic upgrades included updating kitchens and bathrooms, and new appliances, flooring, and fixtures
  • Common area/exterior refurbishments included new roofs, parking lot repairs, and refurbished common areas
  • Utilized RESSCO’s lower cost structure and full-service platform to lower operating expenses
  • Gross IRR/Equity Multiple = 16.4%/2.2x
  • Average Cash-on-Cash Yield = 5.1%

Riverview Crossings – Riverview, Michigan

  • Built 1974, fourteen 3-story buildings totaling 300 units
  • Attractive basis relative to recent comps and below replacement cost
  • Below market rental rates, particularly as compared to newly renovated units in the competitive set
  • Consistent rental demand due to location, with employment and educational facilities creating a need for people to live in this area
  • Ford Motor Company world headquarters located ~10 miles from the property
  • Minutes from major employers, shopping, and recreational amenities
  • Proximity to jobs, schools, parks
  • Limited existing and forecasted comparable and competitive housing supply
  • Near several colleges and universities, including Wayne County Community College – Downriver and the University of Michigan Dearborn campus
  • $2.1 million capital plan to competitively reposition the Property
  • In-unit upgrades included kitchen and bathroom updates, and new appliances, flooring, and fixtures
  • Common area/exterior refurbishments included parking lot repairs and improved landscaping
  • Utilized RESSCO’s lower cost structure and full-service platform to lower operating expenses
  • Gross IRR/Equity Multiple = 23.4%/2.0x
  • Average Cash-on-Cash Yield = 4.4%