Case Studies
Barvin has invested in the success of many properties throughout Texas and the southwestern and southeastern US. From investment to renovation to realization, we have established a set of guiding principles and unique processes that expertly position our acquisitions for prosperity.
The below case studies include our value add portfolio. Barvin transitioned to a core/core plus acquisition and ground up development strategy in 2018 following the compression in cap rates across different asset classes.
Class A Case Studies
Los Altos • Dallas, TX
Purchased in October 2020
- Occupancy: 89.44%
- Average Rent: $1,474
- Purchased at $62,600,000
- Debt secured at 2.64% (fixed-rate) with an LTV of 63%.
- Price per unit below replacement cost.
- Five minutes from downtown Dallas. extensive redevelopment in area.
- Property had existing rent concessions and lower rents than comparable.
Today
- Occupancy: 96.6%
- Average Rent: $1,680
- Recent BOV: $80,000,000
- Rebranding, minor repairs, and updates were performed upon closing.
- Ineffective management was replaced with a Barvin partner, then transitioned to in-house Barvin management.
- Rent concessions burned off; rents raised to comparable with market
Returns
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Average T12 Cash on Cash Return: 6.12%
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Average CoC Return: 5.87%
- Asset Appreciation: 27.8%
Sync at Perimeter • Atlanta, GA
Purchased in July 2019
- Occupancy: 94.4%
- Average Rent: $1,515
- Purchased at $78,500,000
- Assumed an existing fixed-rate loan at 3.6% interest and a starting LTV of approximately 50%.
- Promising submarket with expanding commerce and high growth potential.
- Existing rents significantly below those of comparable properties
- Bought as moratorium on wood-framed apartments went in effect, limiting supply.
Today
- Occupancy: 98.0%
- Average Rent: $1,753
- Recent BOV: $120,000,000
- Minor renovations and rebranding were completed by 1Q20.
- 500,000 sqft State Farm Campus was constructed next door.
Returns
- Average T12 Cash on Cash Return: 7.77%
- Average CoC Return: 5.59%
- Asset Appreciation: 52.8%
Portfolio Case Studies
Oak Lawn Heights • Dallas, TX
Purchased in 2011
- Occupancy: 88%
- Average Rent: $559
- Refinanced in 2013
- Equity Returned: 100%
Today
- Occupancy: 98%
- Average Rent: $984
- Cash-on-Cash: 18.2%
Business Plan
Addressed deferred maintenance issues, emphasized property management strategies to drive leasing demand and occupancy. Aggressively retenanted resident profile creating a safer and inviting community. Improved property offerings with a new dog park, improved outdoor living area, leasing center, and business center.
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Full interior renovations.
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Improvements allowed property to stabilize and achieved a 15% rent premium in the first year.
- Refinanced at end of renovations and returned equity.
Full Cycle Case Studies
The Reserve at Windmill Lakes • Houston, TX
Purchased in 2012-
Occupancy: 95%
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Average Rent: $744
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The property was experiencing high rent delinquency and turnover
Stabilized
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Occupancy: 97%
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Average Rent: $840
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Turned over property’s resident base to reduce delinquencies
- Spent approximately $4M to repair and renovate exterior and interior of property
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Refinanced in 2014
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Equity Returned: 60%
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IRR: 87.1%
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Cash-on-Cash: 23.0%
Country Club Place • Houston, TX
Purchased in 2013-
Occupancy: 10%
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Average Rent: $500
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Property was nearly vacant
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Only one out of five buildings was habitable
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Occupancy: 92%
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Average Rent: $771
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Spent approximately $7.5M to bring the rest of the buildings back on line and renovated exterior and interior of property
- Refinanced in 2017
- Equity Returned: 40%
- IRR: 30.3%
- Cash-on-Cash: 16.6%
The Ellis • Houston, TX
Purchased in October 2017-
Occupancy: 84.7%
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Average Rent: $698
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Extensive renovations began just three weeks after closing.
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Purchased at $13,250,000.
- Previous property owner neglected residents and repairs, leading to high turnover. There was also a significant amount of crime at the property.
Sold in October 2021
- Occupancy: 94%
- Average Rent: $869
- Property was sold for $26,000,000
- Renovations allowed rents to be
substantially increased. - Additionally, lower
bad debt, and lower concessions drove
increased value.
Returns
- IRR: 26%
- Achieved Equity Multiple: 2.5x
- Equity Raised: $5,800,000
- Total Realized Value: $14,391,053
The Alora • Houston, TX
Purchased November 2012
- Occupancy: 81.3%
- Average Rent: $596
- Purchased at $7,250,000
- Built in 1973. Poorly maintained, poorly
managed. Centrally located. - Property had a reputation for minor
criminal activity. - Staff was unresponsive to needs of the
residents. Some staff found to have been
stealing from the property. - Extensive renovations commenced upon
purchase.
Sold December 2021
- Occupancy: 92.8%
- Average Rent: $988
- Property was sold for $36,000,000
- Strategy of complete rehab of property
itself as well as property reputation. - An experienced Barvin manager assigned
to the property. Problem residents asked to
vacate. Property restaffed. - Property transitioned from utilities
included to a RUBS allocation program.
IRR: 39%
Returns
- Achieved Equity Multiple: 8.4x
- Equity Raised: $3,500,00
- Total Realized Value: $29,274,927
Redwood Gardens • Houston, TX
Purchased in October 2017
- Occupancy: 90.6%
- Average Rent: $550
- Purchased at $8,750,000
- Property in a state of disrepair
- Issues surrounding timely payment of rents, criminal activity on the apartment grounds, and residents disregarding communal space & property cleanliness.
Sold in October 2021
- Occupancy: 93.9%
- Average Rent: $796
- Property was sold for $15,500,000
- Resolved staffing issues by utilizing seasoned Barvin managers and staff from a neighboring property.
- Evicted non-paying tenants and criminal elements. Reset resident expectations involving timely rent payments and property cleanliness.
- New, designer-created branding and paint scheme created additional value.
Returns
- IRR: 27%
- Achieved Equity Multiple: 2.5x
- Equity Raised: $3,150,000
- Total Realized Value: $7,805,589
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