Poplar Street Apartments

Poplar Street Apartments – SOLD

Front door closeupIn August 2013 Mountain Capital Group acquired a partially re-habilitated 21 unit building in the Mayfair neighborhood of Denver. Mountain Capital immediately began to finish the updates in the property; 1st by giving notice to tenants in 4 units which had not been touched since 1949 when the building was built to vacate in 30 days. Then proceeding to completely update these units by opening the walls between the kitchen and living area, adding dishwashers, garbage disposals, microwave units, and stainless steel appliances. Further the hardwood floors were refinished, new tile and granite was installed in the kitchens and bathrooms.

The building did not have air conditioning thus Mountain Capital added air conditioning to all units. Many of the windows in the building had been replaced with newer Pella double pane windows, and Mountain Capital completed the job.

The building is individually metered for electricity, but not gas or water. Mountain Capital instituted charging tenants for a portion of their utilities (RUBS) thus increased income by an additional $825 monthly. Paying the reimbursement fee made tenants more aware of their utility consumption.

Mountain Capital provided free WiFi and installed a commercial telephone entry system which was programmed to tenants’ phone (usually their cellphone).

The building has 8 garages. The previous owner was not charging for the garages. Mountain Capital added automatic garage doors, new lighting and began charging monthly $50 for each garage. Income from this source generated to $350 per month initially and as of date of sale $520 as upon renewal the rental rate was raised to $65.

During ownership of the property we also added an outdoor deck area and a dog run for tenants. This amenity was received with great thanks by all tenants.

A monthly pet rent of $25 per month per pet was added to rent for all tenants with dogs or cats, including a non refundable pet deposit of $250 per pet.

When purchased for $1,850,000 inclusive of $1,387,500 loan from Chase bank the building generated $14,815 monthly. As of the date of sale in February 2015 total monthly income was $21,975.

During ownership approximately $140,000 was spent on improving the property.

The property was sold for $3,625,000 and investors realized over $1,000,000 in profit on an initial investment of $850,000 in an 18 month period. Member/partners were paid a 6% preferred return during the ownership period in addition to their return of capital and profit.