THE PROPERTY
Williamsburg Place Apartments is a 280-unit multifamily property in Jacksonville, NC, minutes from Camp Lejeune and the New River Air Station. Built in 2011, Williamsburg Place is a fully gated community with 12 apartment buildings, a clubhouse, and multiple garages onsite. The property offers 1-, 2-, and 3-bedroom units with upgraded interiors and an extensive list of amenities.
THE CHALLENGE
Facing numerous challenges, the owner was considering selling the apartments. After consulting with Sweetwater Property Management (SWPM), the owner opted to employ their professional services to improve the performance of the Williamsburg Place Apartments.
The SWPM team faced several issues:
▪ Low occupancy
▪ Staff not visible and employed in positions not best suited for their skill-set
▪ Rental rates were under market and not being raised
▪ Absentee owners
▪ Poor customer service resulting in conflict between tenants and management
▪ Poor online reviews
▪ Not being well maintained
▪ Dated, unusable amenities
THE GOAL
Maximize property value, improve customer relations, increase revenues, and reduce expenses.
THE SOLUTION
Sweetwater Property Management jumped into action and focused on running the property more efficiently and increasing value through revenue and expense improvements.
Immediate enhancements were completed to the property, including cabinet repairs and curb appeal improvements. However, the most effective action was having a responsive and engaged management team working cohesively to ensure a friendly and enjoyable renting experience for tenants.
With their professional culture, improved customer service, and market approach, Sweetwater Property Management increased rents by 16% in 10 months (an average of $160/unit). Recent rents range from $1,175-$1,575.
| Unit Type | # of Units | SF | Recent Leases | |
| Utopia | 1×1 | 35 | 871 | $1,175 |
| Avalon | 1×1 | 36 | 951 | $1,800 |
| Paradisus | 2×2 | 84 | 1,225 | $1,360 |
| Enclave | 2×2 | 60 | 1,305 | $1,375 |
| Regency | 3×2 | 38 | 1,422 | $1,575 |
| Promenade | 3×2 | 26 | 1,518 | $,1575 |
Other income sources are continuously reviewed for improvement and growth opportunities. The team began charging key activation fees, added package-locker income, charged back for valet trash, and introduced washer/dryer rentals while implementing amenity fees and renter’s insurance. These additional income opportunities resulted in a massive 50% increase in other income collected.
In addition to the outstanding revenue increases, SWPM added value by reviewing property expenses and developing cost-efficient practices, such as: utilizing in-house painters, software improvements, and eliminating the riser room expense. Despite a significant tax increase, the Sweetwater team reduced property expenses by 14%.
SUMMARY
The Sweetwater Property Management team has shown how they can achieve significant profits for property owners. Under the care of SWPM, Williamsburg Place has increased its overall Net Operating Income by 32% compared to 2020.
When operations are annualized (April 2021-March 2022), the net operating income of $2,801,385 brings a property valuation of $56,027,900 at a 5% cap rate.
The value of Williamsburg Placed increased by $23,627,895 under Sweetwater Property Management in less than 1 year.
