The thesis, right now
~13 months post-close on a management turnaround of a 1910 URM asset bought below replacement cost (7.6% going-in cap). A deliberate 2025 turnover wave replacing dysfunctional prior self-management drove occupancy to a 67.6% trough (Sep-25), then recovered to the mid-90s; the stabilized Q1-2026 quarter came in within ~2.5% of the underwritten NOI plan and in-place rents run ~$575/mo above underwriting. Trailing-twelve NOI still carries the lease-up drag (~$456K annualized vs $515,683 UW Year-1). $170,000 distributed across four quarters. This is a cash-flowing, non-value-add deal (no unit renovations); elevated re-lease downtime (73.7-day average) reflects the 2025 transition and is improving on recent turns.
What moved
Occupancy 94.1% (Jun 2026), 2 vacant (N, U in turn); fully re-stabilized from the 67.6% Sep-25 management-transition trough.
In-place rent ~$65,933/mo, +$575/mo vs underwriting in aggregate; RUBS billback mid-conversion (65%->95% target); parking + owner-operated laundry now live (ununderwritten upside).
AR concentrated in 2 residents (peaked $13,784 Feb-26, closed Q1 at $6,636); Unit B chronic 15-month holdover + persistent past-due.
Property-tax reassessment hearing anticipated late summer/fall 2026 (largest near-term P&L swing); fall-2026 expiration cluster (~13-15 leases).
Strong week: 34 inquiries, 2 approved apps, one vacancy left; delinquency improved to ~$10K. New SHA rule requires 30-day (not 14-day) notices for voucher tenants — prior notices being reissued. Entrada migration underway.
What this record contains
This page is generated from the canonical record. Dimensions marked partial/pending are honestly incomplete — not zero.
Occupancy & income
| Month | Income | NOI | Expenses | Margin |
|---|---|---|---|---|
| 2025-07 | $62,156 | $43,913 | $18,243 | 71% |
| 2025-08 | $61,345 | $49,167 | $12,178 | 80% |
| 2025-09 | $53,473 | $33,019 | $20,454 | 62% |
| 2025-10 | $47,416 | -$7,698 | $55,114 | -16% |
| 2025-11 | $60,703 | $38,294 | $22,409 | 63% |
| 2025-12 | $69,834 | $43,189 | $26,644 | 62% |
| 2026-01 | $63,569 | $33,827 | $29,742 | 53% |
| 2026-02 | $62,723 | $42,221 | $20,502 | 67% |
| 2026-03 | $69,475 | $52,830 | $16,645 | 76% |
| 2026-04 | $72,903 | $12,974 | $59,928 | 18% |
| 2026-05 | $67,177 | $47,984 | $19,193 | 71% |
Unit-level rent roll
Current rent-roll module not attached for this asset. Run rent_roll_parse.py on the latest month and pass the modules dir.
Operating performance · 2025-07 → 2026-05 (11mo)
| Year | Income | NOI | Margin | Opex |
|---|---|---|---|---|
| 2025 (6mo) | $354,927 | $199,884 | 56% | $155,042 |
| 2026 (5mo) | $335,847 | $189,836 | 57% | $146,010 |
Where the money goes
Management
Management up 66% (recent vs earlier) — 23.7% of opex, ~$77,860/yr.
Utilities
Utilities up 35% (recent vs earlier) — 12.3% of opex, ~$40,341/yr.
Turnover
Turnover up 32% (recent vs earlier) — 3.8% of opex, ~$12,371/yr.
Marketing
Marketing up 116% (recent vs earlier) — 3.4% of opex, ~$11,105/yr.
Management
Management spiked to $15,108 in 2026-01 (~2.7x typical) — confirm one-time vs recurring.
Repairs & Maintenance
Repairs & Maintenance spiked to $8,531 in 2025-11 (~3.0x typical) — confirm one-time vs recurring.
Utilities
Utilities spiked to $9,225 in 2026-04 (~2.8x typical) — confirm one-time vs recurring.
Administrative
Administrative spiked to $10,366 in 2025-07 (~8.2x typical) — confirm one-time vs recurring.
Other
Other spiked to $5,032 in 2025-12 (~10.3x typical) — confirm one-time vs recurring.
Marketing
Marketing spiked to $3,770 in 2026-03 (~5.6x typical) — confirm one-time vs recurring.
Rising = recent months vs earlier; spike = worst month ÷ typical. One-time acquisition/financing costs are stripped to NOI automatically.
Pricing power & velocity
Actual days vacant, unit by unit
| Unit | Re-leased | Prior move-out | New move-in | Days vacant | Basis | Type |
|---|---|---|---|---|---|---|
| O | 2026-06 | 2026-04-01 | 2026-06-01 | 61d | actual | trade-out |
| Z | 2026-04 | 2026-01-31 | 2026-03-20 | 48d | actual | trade-out |
| F | 2026-02 | 2025-11-17 | 2026-01-24 | 68d | actual | trade-out |
| L | 2026-01 | 2025-10-01 | 2025-12-15 | 75d | actual | trade-out |
| 5 | 2026-01 | 2025-07-31 | 2025-12-05 | 127d | actual | trade-out |
| M | 2026-01 | 2025-08-10 | 2025-12-08 | 120d | actual | trade-out |
| G | 2026-01 | 2025-11-30 | 2025-12-12 | 12d | actual | trade-out |
| 9 | 2026-01 | not recorded | ~2026-01-01 | 152d | est. | trade-out |
| C | 2025-11 | 2025-08-31 | 2025-10-17 | 47d | actual | trade-out |
| 2 | 2025-11 | 2025-10-14 | 2025-10-31 | 17d | actual | trade-out |
| J | 2025-11 | 2025-09-30 | 2025-10-02 | 2d | actual | trade-out |
| W | 2025-11 | 2025-07-31 | 2025-10-10 | 71d | actual | trade-out |
| O | 2025-10 | 2025-08-31 | 2025-09-29 | 29d | actual | trade-out |
Trade-outs & renewals — what repricing is capturing
| Month | Unit | Prior rent | New rent | Δ $/mo | Δ % | Type |
|---|---|---|---|---|---|---|
| 2026-06 | 1 | $1,795 | $1,885 | +$90 | +5% | renewal |
| 2026-06 | O | $1,750 | $1,749 | -$1 | -0.1% | trade-out |
| 2026-06 | 7 | $2,400 | $2,520 | +$120 | +5% | renewal |
| 2026-06 | V | $1,700 | $1,734 | +$34 | +2% | renewal |
| 2026-04 | Z | $3,000 | $3,125 | +$125 | +4.2% | trade-out |
| 2026-02 | F | $1,800 | $1,650 | -$150 | -8.3% | trade-out |
| 2026-01 | L | $1,650 | $1,699 | +$49 | +3% | trade-out |
| 2026-01 | 5 | $1,495 | $1,650 | +$155 | +10.4% | trade-out |
| 2026-01 | M | $1,575 | $1,650 | +$75 | +4.8% | trade-out |
| 2026-01 | G | $2,095 | $1,950 | -$145 | -6.9% | trade-out |
| 2026-01 | 9 | $972 | $2,399 | +$1,427 | +146.8% | trade-out |
| 2025-11 | C | $1,600 | $1,699 | +$99 | +6.2% | trade-out |
| 2025-11 | 2 | $3,500 | $1,950 | -$1,550 | -44.3% | trade-out |
| 2025-11 | J | $2,750 | $2,700 | -$50 | -1.8% | trade-out |
| 2025-11 | W | $1,595 | $1,650 | +$55 | +3.4% | trade-out |
| 2025-10 | O | $1,650 | $1,750 | +$100 | +6.1% | trade-out |
Occupancy, rent & turnover across the hold
Debt-service coverage
Negative leverage
Cost of debt 6.35% vs. ~6% cap rate — debt costs more than the asset yields; leverage is dilutive at this basis.| Lender | Balance | Rate | Structure | Debt svc/yr | Maturity |
|---|---|---|---|---|---|
| Everbank | $4.54M | 6.35% | IO | $289K | 2030-05-20 |
Valuation & returns engine
Cash to & from partners
| Period | Amount |
|---|---|
| 2025-07-26 | $20,000 |
| 2025-10-27 | $35,000 |
| 2026-01-09 | $45,000 |
| 2026-05-01 | $70,000 |
What needs attention
| Priority | Theme | Item | Owner | Next step | $ impact | Raised |
|---|---|---|---|---|---|---|
| Low | Leasing | Strong week: 34 inquiries, 2 approved apps, one vacancy left; delinquency improved to ~$10K. New SHA rule requires 30-day (not 14-day) notices for voucher tenants — prior notices being reissued. Entrada migration underway. | Lombard PM | Reissue SHA 30-day notices; monitor unit 5 noise-complaint eviction path. | — | 2026-07-10 |
Delinquency
3 flagged accounts.taxes
Property-tax reassessment hearing late summer/fall 2026 - largest near-term P&L swing (upside if won; ~$19K/quarter accrual is permanent if lost). Also drives lumpy monthly NOI.
delinquency
Concentrated 2-resident AR and chronic Unit B holdover/past-due; manage closely.
revenue
RUBS billbacks below underwriting until 65%->95% conversion completes; Q1-26 EGI ~9% under proforma (billback gap + concession burn-off + turn vacancy).
capex
Hot-water tanks under a lease still in prior owner's name; ~$10K buyout or re-papering; not deemed material.
leasing
Fall-2026 expiration concentration (~13-15 leases, ~40% of book); staggering renewals to spread it.
financing
Senior loan interest-only initial period steps up on conversion to amortizing; 1910 URM construction constrains exit lender pool / warrants wider exit cap.