45-unit townhome style apartment complex closed August 17th, 2023
Convolo Capital adds to its Georgia portfolio with the acquisition of McClure Springs, a 45-unit townhome community located in Oakwood, GA. Purchased in August 2023, McClure Springs offers spacious four-bedroom, three-bathroom residences, each spanning 1,600 square feet. This desirable property, completed in 2021, was acquired directly from the developer.
Strategically situated in Hall County, McClure Springs benefits from the area's projected 20% growth by 2030, driven by diverse economic and employment factors. Hall County has experienced a 15% population increase since 2010, outpacing both the national and state averages.
Convolo Capital seeks to reposition McClure Springs Townhomes by initially eliminating loss-to-lease and bringing the units up to market rents. The seller, a developer, is eager to move on to new development projects. This will be accomplished by evaluating all service contracts and implementing new ones where quality and price make sense. Property management services will facilitate seamless ownership transition. Additional revenue streams will be generated through pest control fees and billing back trash fees.
Unit upgrades will be strategically implemented during turnovers, with targeted rent increases to align with area comparables, potentially surpassing $1,700 monthly rents. While lightly upgraded kitchens featuring painted cabinets, backsplashes, and stainless steel appliances offer an option for increased value, they are not essential to achieving the business plan.
Convolo Capital will closely monitor demand elasticity across different units, capitalizing on premium features such as private driveways and proximity to open spaces to optimize rental rates. With a robust budget and strategic flexibility, Convolo Capital is poised to unlock McClure Springs Townhomes' full potential and capitalize on Oakwood's thriving real estate market.