Agave Azul experienced significant operational and physical neglect and had been through multiple lawsuits with Neighborhood and City officials related to the ownership practices over the previous decades.

 

At acquisition, rent was priced at $0.78/sf and the property was generating $45,000 in monthly gross income. Value creation for Agave Azul occurred through three avenues. First, a City deed restriction, which made the property a 55+ community was successfully removed through petitioning of the City Plan Commission as well as City Council. Additionally, an extensive renovation project to the interior and exterior revamped the overall curb appeal. Finally, our team instituted proper oversight to achieve operational effectiveness.

 

The physical condition of the property was corrected through an extensive capital expenditures project and professional operational standards were instituted through strict policies and procedures. The policies have proven to be extremely effective in keeping the property safe and clean and have dramatically increased the rent per square foot upwards to $1.07 and our monthly gross income up to $70,000 within the first 18 months of ownership.