For the past two decades, Xpera Group and its construction subsidiary have been involved in renovating more than 100 condominium complexes throughout Southern California on behalf of homeowner associations. Now, the firm is building upon that specialized expertise with a new service division, Xpera RE, focusing entirely on the renovation — and re-positioning — of income-generating properties.
Under the leadership of development industry veteran Neal Singer, Xpera RE focuses primarily on multiunit residential renovations, including apartments, senior housing, hotels, and dormitories. Its inaugural project under the Xpera RE banner is a 498-unit garden apartment complex in Orange County.
According to the firm’s market research director, Alan Nevin, there are 300,000 apartment units in San Diego County alone, with an average age of 41 years. Few of the aging units have been renovated and the vast majority of them lack an in-unit washer/dryer and air conditioning. Most need a substantial renovation to bring them up to modern standards. Nevin notes that while the majority of renters in the county can afford to rent “B” quality apartments, most of the inventory is of “C” quality. Therein lies a big opportunity for property owners.
Xpera RE’s solution is not just focused on renovation of these aging properties, but rather re-positioning them. This involves a much more robust approach that helps income-producing properties reach their full potential with smart modernization and enhancement strategies that position the asset strategically within the marketplace.
Xpera RE has a uniquely strong and well-rounded team to ensure that it controls all elements of the renovation process, providing owners with a simple, one-stop renovation process.
Xpera RE draws upon the capabilities of a diverse team of specialized experts in order to help owners increase rental income, optimize property value and boost operational efficiencies. The result is a customized solution that includes market research, building condition assessment, architecture and design, renovation and construction management services.
Xpera RE goes a step further to address the financial aspects of the project as well. The firm has strong working relationships with lenders to finance the renovation and then refinance the debt on the project after the new, post-renovation rents are in place and stabilized. Xpera RE also has a strong working relationship with a CPA firm that specializes in cost segregation, a tax-saving technique that few owners take advantage of, which can make renovation a more attractive and viable option for owners.
The renovation programs recommended by Xpera RE are based on the concept that the renovation costs should be able to be recaptured in four to five years. However, each project is unique, and part of a larger strategy that considers what the market needs, tenants want (and are willing to pay for) and owners hope to achieve. Xpera RE is well-positioned to guide owners through this entire process, ensuring the project’s long-term financial success.
To learn more about Xpera RE’s real estate re-positioning services, call Alan Nevin or Neal Singer at 760-436-7770 or visit www.xperagroup.com.