SAN FRANCISCO, CA (February 2021) — 2020 was a year unlike any other, the events of which few could have predicted. It was relentless, chaotic, and seemingly never-ending. However, as we begin a new year and have an opportunity to look back, perhaps 2020 was transformative. From the mundane, such as how we shop for groceries, to the complex, such as how we connect and communicate, 2020 has in some way transformed every aspect of our lives.
Among the many things that 2020 transformed, perhaps it was the meaning of “home” that changed the most. Our homes and apartments, which were once places we simply passed through on our way to the events of the next day became our headquarters. For many, kitchen tables became offices and classrooms; living rooms were transformed into yoga studios and movie theaters.
As providers of housing, witnessing this transformation, we felt it was our responsibility to meet this unprecedented moment and provide for the changing needs of our residents. As such, immediately following the lockdown orders we put in place community events to help our residents cope with being separated from loved ones and their communities. These events included cooking competitions, where residents would share their recipes and photos on our community Facebook page. We connected our residents with online fitness classes, to help them be active and fight back against stress. These events and others like it allowed our residents to stay safe in their homes while also fostering the need for community.
In addition to helping to provide for our residents’ need for community, we also partnered with Wells Fargo Bank in 2020 to host a financial literacy class for all of our communities to help address their financial concerns. The importance of proper money management has been hastened by the COVID-19 pandemic and its resulting economic consequences. Such classes as the one provided by Wells Fargo can aid in helping our residents grapple with any financial uncertainties they may be facing and in turn, can assuage any anxiety or stress that comes with such uncertainties. We also continued our annual school backpack giveaway at all properties, to help provide support to children and their families as they struggled to begin the 2020-2021 school year.
On the property level, as a company, we sold three properties in our portfolio: August, Autumn, and Aero Apartments. We purchased Aero Apartments in 2017 and rebranded the property as well as improved the aesthetic features of the property, such as replacing the balconies and adding wood trim. We also added amenities to the property; for example, we added an in-ground pool, a laundry center, and fully upgraded the property’s clubhouse. Upon its sale, we doubled the value of the property and provided our investors a net return of 98.3%, or 31.5% annualized.
In 2020, we also added a new property to our portfolio: Regal Crossing. Regal Crossing is a 384-unit apartment community located in Dallas, Texas. The prior owners had invested $4.8M, or $12.5K per unit, into Regal during the 3 years prior to our acquisition, upgrading exteriors and 50% of the unit interiors. Additionally, the property’s in-place rents were approximately 25% below market rates. We’ll leverage our four other assets nearby to create management efficiencies.
For 2021 we are planning at least 4 acquisitions. We are targeting a number of other strong metropolitan areas – Austin, Nashville, Atlanta and others – in addition to increasing within Dallas, which continues to be one of the fastest-growing and strongest cities economically in the US.
Despite 2020’s challenges, we continue to be excited about what’s ahead for our industry and the economy. We’re looking forward to working with you all on our current investments and future ones as well.
Travis and Ron
Contact:
Travis Pacoe or Ron Abta
Polaris Real Estate Partners
415-826-5202 main
tpacoe@polaris-lp.com; rabta@polaris-lp.com