MUSS VALUE ADD

Capital improvements to common areas, amenities and apartment interiors. Improved management and new branding.

PROPERTY OVERVIEW

Located in the affluent Homewood submarket, this 160-unit apartment complex features proximity to highly rated schools and easy access to downtown. The property was purchased from the original developer who made only modest upgrades over the span of four decades. Our repositioning program included the addition of a suite of amenities including a renovated clubhouse, pool, a new fitness center, outdoor BBQ kitchen, firepit lounge, game lounge and dog park.

INVESTMENT STRATEGY

Birmingham is an attractive market due to it’s rapid growth, fueled by new companies and a younger demographic seeking a high-quality lifestyle at a lower cost. The city offers convenient proximity to Atlanta, Huntsville, Chattanooga, Montgomery, and Nashville,  leading to its emergence as a regional logistics hub, with Amazon, Lowe’s, FedEx and Carvana all establishing an important presence in the area.

We acquired Hickory Knoll from the original developer and executed a targeted value-add program aimed at attracting higher-end renters. Upgrades were carried out with a contemporary design approach and an upscale aesthetic. Improvements included a fully remodeled clubhouse with a work-from-home café, a resort-style pool, a state-of-the-art fitness center, a game lounge, and a fire pit lounge—all thoughtfully designed to foster the sense of community desired by this demographic.

As units were vacated, interiors were upgraded with new stainless steel kitchen appliances, updated countertops, modernized baths, contemporary flooring, and designer paint colors to attract young professionals.

A newly launched branding strategy and marketing program, highlighting the major capital improvements, reintroduced and repositioned the property in the marketplace. As a result of these efforts, the property achieved significant rent increases, leading to a highly beneficial ROI.