SPI Advisory Plans $4.5M in Renovations to 2,000-Unit Portfolio
SPI Advisory is still in acquisition mode with plans to add about 700 more units before year's end while also investing more than $2M in renovations over the next 12 months across its portfolio, says principal Sean Mabarak. He tells us the 2,000-unit portfolio of Class-B and C value-add properties has been on the books for around 18 to 24 months and some properties are at the end of their renovation cycle and many are just beginning the sale process as soon as they’re stabilized. Sean (here with a big group of college friends at Napa Valley) says some of the improvements that will be in the works include redesigned clubhouses, gyms and pool areas and new common area amenities, extensive interior updates, new appliances, rebranding, dog parks, new tennis courts, covered parking, etc.
SPI acquired The Lodge at Timberglen this month in far North Dallas. The 260-unit asset was 99.5% occupied at takeover. This was an off-market transaction, says SPI principal Michael Becker. He says SPI has two additional acquisitions in escrow and plans to acquire at least two more large Class-C+ to A- value-added apartment deals before the year closes out. They've hired new staff to help manage the growing portfolio and have plenty of capacity going forward, he tells us. Distributions to investors are still beating expectations, and the market continues to strengthen. Another four transactions before year’s end will probably add about 700 units.