Konhoff Company focuses on markets like California where the barriers to entry for new multifamily development are extremely high. In these markets, it can make more sense, on a risk-adjusted basis, to utilize a buy and renovate business model to increase a multifamily asset's value.. Konhoff Company looks for multifamily assets large enough to trade based on their income. The assets are typically located in high-rent areas where significant improvements to the property will yield higher income.
We look for deferred maintenance issues that, when updated, can add the greatest value to the target renter profile. Our target rehab/unit cost ranges from $5,000 - $20,000/unit depending on project dynamics. Our expected ROIC (Return On Invested Capital) target is 12%. For example, if a rental unit's income increases by $80 per month and requires a capital investment of $7,800, the annualized ROIC equals 12%.
We look for deferred maintenance issues that, when updated, can add the greatest value to the target renter profile. Our target rehab/unit cost ranges from $5,000 - $20,000/unit depending on project dynamics. Our expected ROIC (Return On Invested Capital) target is 12%. For example, if a rental unit's income increases by $80 per month and requires a capital investment of $7,800, the annualized ROIC equals 12%.
Los Angeles value-add case study
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Los Angeles value-add case study
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Typical Exterior Improvements we include in our Rehab projects include the following:
Typical Interior Improvements we include in our Value-Add projects include the following:
- Repainting
- Possibility for balcony extensions
- Update landscaping
- Update clubhouse/exercise/pool amenities
- Add garages to carports
- Update monument signs for market window
- Update leasing office
Typical Interior Improvements we include in our Value-Add projects include the following:
- New Carpet
- New Vinyl
- Crown Molding
- Granite Countertops
- New Appliances
- Internet Access
- Washer Dryer Hookups
- Increase Master Closet Space when possible
