Background

Adjacent to an existing Northland property in Melbourne, FL, Caribbean Villas had fallen into disrepair and was being poorly managed by its’ then owners.  The community had multiple uninhabitable units and due to neglected repairs, tarps were covering roofs for more than a year. However, the structure of the property was incredible, it had great floor plans and garages, and desirable amenity potential. Additionally, the property was situated next to a Northland community in a high growth location with economic drivers such as major retailers, employers, colleges, sought-after beaches, and highways all nearby. Northland saw the value and potential in rehabbing this asset.

Opportunity

The management upside combined with the unique structural qualities of the asset was an incredibly rare combination to find, and thus a fantastic opportunity for Northland to turn the property around. Northland acquired Caribbean Villas in July 2016.

Execution

Since acquiring Caribbean Villas, Northland has completed extensive interior and exterior upgrades, including upgrading 40% of the units, replacing roofs, new exterior paint, new garage doors, updating landscaping, redoing parking lots, installing a new monument sign, and updating the clubhouse.

Results

From when Northland acquired the property in July 2016 to December 2017, total revenue has increased by nearly 79%. A year and a half after acquisition, Caribbean Villas was preleased at 97%