Two apartment complexes managed together from one on-site leasing office comprising 216 units had an average 63% occupancy, which was continuing to decline while receivables climbed. The court named AthenianRazak as Receiver for the properties. We replaced staff; initiated procedures to collect delinquent rents; conducted a comprehensive market analysis; initiated an aggressive marketing and leasing program; analyzed buildings for structural issues; inspected and determined repairs needed for all vacant units; and designed a maintenance, turnover, and phased replacement program working within the cash-flow of the property to address all issues.
Since the initiation of the Receivership, leasing at the property has turned around and occupancy has been increased from 63% to 87%. The staff has learned to document both leasing and expenses in state-of-the-art software. AthenianRazak’s market study and subsequent leasing success showed that some rents were under market; rents therefore were increased an average of 3.5%, which added over $1 million in value. Both properties were marketed for sale and sold in 2012.