Case Studies
Case Study 1
Services
Asset Management / Financial Analysis
Asset
Multifamily property consisting of 97 units
Synopsis
C Class property with DCR < 1
Challenges
- Over $120k in aged payables
- 75% occupancy
- 5% recurring delinquency rate
- Deferred maintenance causing city and county fines and violations
- Depleted reserve accounts
Solutions
- Replaced management, all site-level staff, placed all tenants with more than 45 days delinquency on eviction notice, and set up payment plans for remaining delinquencies.
- Brought turnover costs in house, minimizing contracted labor costs. Renovated 50% of units with parts located on site, and leased out with deferred concessions. Used increased income during following months to renovate additional units.
- Negotiated directly with City and County officials to reduce compliance standards, minimizing costs.
- Performed full utility systems inspection, and repaired or replaced inefficiencies.
Results
- Decreased utility costs by 10%, using minimal capital
- Leased property to 95% within 4 months, with no capital infusion
- Decreased aged payables by 33%, with no capital infusion
- Increased DCR from below 1 to 1.15 over same period of time
Case Study 2
Services
Asset Management/Property Management
Asset
Multifamily property consisting of 840 units
Synopsis
40% occupancy and major deferred maintenance issues
Challenges
- Lack of property management supervision
- Demoralized staff
- Gang related activities and squatters
- Major deferred maintenance and code violations
Solutions
- Introduced a new professional management team with a proven track record dealing with crime related properties.
- Created a new community watch program with the local police. Upgraded customer service levels at the property for better resident retention.
- Implemented tight purchasing, inventory and cash handling systems.
- Created a deferred maintenance schedule along with the capital improvements to bring the property up to code and create an enjoyable environment for the residents to live.
Results
- Reduced crime by 75%
- Occupancy stabilized at 87%
- Net Operating Income increased by $2.3 million
The Case Studies listed above are derived from and represent the actual experience of our Principals. They are not projects currently under contract with Wilshire West Advisers, Inc., but rather are examples of the kinds of services we can provide based on the actual experience of our principals.