Case Study – Colton Creek Apartments2018-07-18T08:56:48+00:00

CASE STUDY

COLTON CREEK APARTMENTS

PROBLEM

As a national partner to this client, AGES is a part of the due diligence team for every incoming acquisition. Per collaborative strategy, AGES is to assess and propose projects that meet the desired investor criteria (Under 4 year return, IRR above 30%). With this value-add focused client, AGES is also to suggest those strategies (improved aesthetic & life safety concerns).

SOLUTION

AGES Consulting was on site for due diligence within 7 days, in accordance with client schedule. AGES performed an electrical audit of the site to identify cost saving measures and life safety (site brightness) issues, focusing on the use of LED lighting technology. AGES identified various solutions.

PROPOSAL

AGES made the following recommendations: Convert existing Compact Florescent lamps to LED
(Wallpacks, Breezeways, Exterior Garage/Building Fixtures, Pole Lighting, Site Floods)

FINANCIAL ANALYSIS

0$
TOTAL SPEND
0$
ANNUAL OPERATIONAL SAVINGS
0$
Operation Savings Compounded over 5 Years
0
RETURN ON INVESTMENT (YEARS) CONSERVATIVELY
0%
INTERNAL RATE OF RETURN
0$
ADDITIONAL ASSET VALUE CREATED (5% CAP)

EXECUTION

AGES was contracted to execute this project. Per AGES standard contracting agreement, the project was completed in it’s entirety within 90 days of mobilization payment.

RESULTS

  • Project outperformed AGES’ initial projections.

  • Property saw quantifiable increase to NOI immediately.

  • With lighting maintenance out of the equation, maintenance staff was freed to focus their valuable time elsewhere.

  • Tenants reported an increase to safety in the garage, due to increased brightness.

  • Increased Marketability due to new aesthetic and increase life safety

  • Property increased all governed utility scores

FANNIE MAE GREEN LOAN COMPONENT

WATER PROJECT

AGES’ client secured financing through and took advantage of the Fannie Mae Green
Loan incentive program. In addition to executing the lighting project, AGES Consulting
value engineered the lender provided documents and was contracted to execute the
required plumbing project (Toilet retrofit).

VALUE ENGINEERING

AGES reviewed the lender recommendations required to satisfy the loan terms.
Through detailed analysis and concise reporting, AGES found that the lender data was
erroneous and open to revision. With documentation of these errors, AGES’ client was
able to re-negotiate with the lender.

The realized result of this Value Engineering was a $200,000 reduction in project cost.

EXECUTION

AGES was contracted to execute this project. Per AGES standard contracting
agreement, the project will be completed in it’s entirety within 90 days of mobilization
payment. The execution of this project includes entry to all tenant units. AGES’ project
management team created the detailed scheduling and site/tenant coordination to
execute this project without additional client supervision.

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