THE
CHALLENGE
Portugal
Street was JBL’s first multi-unit deal and taught the team the importance
of internal controls and processes in achieving a successful outcome.
The street was arguably the worst street in Fells Point. All of the
homes were subpar rental properties–all two bedroom with one bath,
some with no central heating or air conditioning. The company’s goal
was to buy, stabilize, and renovate the units over a two-year period.
After the first four renovated homes sold, the decision was made to
demolish everything but the façades of the remaining houses. The front
elevations of the homes were the only things unchanged. The new product
sold was upscale, with many features standard rather than options.
All of the homes still had two bedrooms with either one or one and
a half baths, central HVAC, high-performing windows, rear decks, granite
countertops, stainless kitchen appliances, high ceilings, hardwood
flooring, ceramic flooring in the kitchen, and bathrooms with whirlpool
and custom showers.
FINAL RESULT
JBL bought 14 units for $897,000,
invested an additional $800,000 - and sold the homes for an average
of $237, 000 each, while retaining five units for rental and selling
one as a shell. |
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