INDEX

Ongoing

Holding Period

$8 Mil.+

Renovation

$2.3 Mil (53%)

Increased GOI

115%, with operation ongoing

Return on Equity

301 units

Details

BEFORE

After years of mismanagement and neglect, Townhomes at Gateway — a residential complex in central Bensalem — had fallen into deep disrepair.

 

The interior was overrun and decrepit: damaged carpets, missing cabinet doors, broken windows, and leaky roofs had become standard. Outside, overgrown trees and weeds blocked paths and light, while the parking lot was littered with potholes and cracks.

 

In over 15 years, no funds or efforts had been invested in maintaining the property’s integrity.

 

The compromised conditions attracted a weak demographic that further deteriorated the living environment and quality of life for all residents.

Yet deep market research by Premier’s principals suggested that with a complete overhaul, the property presented immense potential: it was the only townhome complex of its kind located in a desirable, family-friendly, well-situated neighborhood bordered by three major highways.

 

Townhomes at Gateway held strong potential as an upscale class B community catering to working families, which could command significantly higher rents. With this vision, Premier acted quickly and decisively to acquire the property.

 

An off-market transaction, the opportunity was made available to Premier through a direct industry relationship.

Complete Repositioning

Immediately upon acquisition in 2018, exterior improvements were implemented, including

replacement of all roofs, windows, lighting, cameras, and sliders. Premier also spearheaded the construction of a new parking lot, the rebuild of the pool and clubhouse areas, and the redesign of the area’s landscaping.

Interior renovations were similarly extensive: the original 1970s interiors of all 301 units were  gut-renovated to achieve an updated and modern look — and build a stronger appeal for a higher-quality tenant base. Over 700 toilets were replaced with water-efficient versions, preventing extensive water wastage — and saving hundreds of thousands in utility bills annually.

Non-qualified tenants were evicted from the property, and a comprehensive anti-crime campaign eliminated illegal activities. Through a completed rebrand and marketing campaign that highlighted the upgraded conditions — and the new, responsive management — Premier was able to re-tenant the property with a stronger demographic.

TODAY

A meticulously managed and desirable property, Townhomes at Gateway now offers an exceptional living experience to residents. Thanks to high occupancy and drastically increased rental rates, Premier was able to refinance the property multiple times — allowing investors to enjoy double-digit annual returns — with all equity returned.