Case Study III

Case Study III:

Marina View Towers

Location:
No. Units:
Rent Restriction:
Lender:

Washington, D.C.
254, twin eight story towers
City Rent Control
Midland Bank

Charter Realty Group (CRG) entered into a contract with the Owner to manage the property in February 1998. The property, located in a very desirable part of the city, was designed by the world famous architect I.M. Pei in 1960. Marina View Towers, is a 254 unit, twin tower, eight story complex. It was neglected for many years. Seventeen apartments were uninhabitable at the time CRG assumed management responsibilities. The Owner had entered into an agreement with HUD to renovate the property, providing approximately $1,000,000 in capital to accomplish their goal.

Economically, the property was performing poorly. Collections were approximately $125,000 monthly and delinquencies were averaging in excess of $40,000. Late vendor payments totaled some $200,000. Occupancy was in the mid-eighty percentile.

The renovation program included: Renovating the leasing office and moving it to the front tower. Re-glazing and re-caulking all the windows, fixing all the cracks in the concrete facade, and power washing the buildings exterior. Replacing all interior unit fan coils. Replacing the central boiler system, domestic hot water boilers, water cooling tower. Additional improvements were major roof repairs, laundry room renovation, exterior lighting, central trash compactors and interior upgrades. The cost of the renovation exceeded the $1,000,000 capital contribution by the owner. The balance of funds required to complete the project came from cash flow.

When the renovations were completed, Marina View Towers stood out as one of the premiere properties in the southwest section of the District.

Through Charter Realty Group’s oversight and management, occupancy and cash flow increased significantly and the property was subsequently sold.