Repositioning multifamily properties is a total passion of mine! Don’t get me wrong—I love doing one-off projects too, but what really excites me is to completely transform an entire property to really make an impact. My passion for repositioning prompted me to leave the multifamily investor side to create Modern Gem Design, where our priority is to create asset value for the owner. Although most individual projects involved in a full property reposition are tough to quantify on actual ROI, we do have a track record of achieving an average return on investment of 20% or higher per unit on interior upgrades. Our unique approach, ability to troubleshoot difficult scenarios, and knowledge of design trends allows us to complete renovations that will stand the test of time.
Fully repositioning a property also makes it much easier to create a cohesive transformation throughout the community, which is so important to the success of a property transition. With the larger budgets associated with these projects, we really get a chance to think outside of the box and create an innovative theme to carry throughout the property. Knowing the current and ideal tenant base when approaching these projects also allows us to really make an impact that appeals to current and future residents.
We do not apply the same cookie-cutter approach to value-add renovations as often seen nationwide. We understand that no demographic is the same and every submarket has its differences in trends, demand and target renter aesthetic preferences. Also, each unit type within a property will often have multiple scenarios or levels of upgrades completed by the previous owner. At Modern Gem Design, we pride ourselves for developing unique multifamily design strategies that will take these submarket demographics and future value projections into account.
We know what lures renters to lease units so we want the property to stand out from the pack through sharp looking curb appeal, amenities that sparkle, and in-unit features that are memorable to your potential renter.
For example, if other renovated properties in the submarket are doing gray cabinets with brushed nickel hardware, black appliances, gray vinyl plank flooring, white marble quartz countertops, and accent wall colors, offer something a little bit different in your interior renovation scope to switch it up. Be unique! You can stand out and create a scope with features that don’t follow the “formula” that’s present in the submarket.
These “formulas” that I’ve seen while shopping properties recently are, in my eyes, outdated now. I can recall creating unit interior renovation scopes with those same colors and finishes 8 years ago. I’m always looking to the future and how the renovations will sit 5-7 years from now from a design aesthetic perspective. We rarely want to go overboard and be too bold but the subtle differences in design can be functional, forward thinking, and cost effective.
Since our niche is in value-add property renovations, I always like to gather inspiration from the A properties in the surrounding areas to see what the top of the market is doing. I’ll gather their current rents, take a tour, walk the units and amenities, take photos and notes to analyze what the “fancy” people are getting for their dollar. Then, proceed knowing that we can recreate a similar look and feel in order to turn a C property into a B+. This exercise also helps us determine a budget for interior unit renovations and what the target rent gain needs to be to achieve an optimal return on investment.
If you would like to chat about how we can improve your property, I’d love to hear from you!
Thanks for reading,
Megan McDowellFounder, Modern Gem Design, Inc.