Early development by RangeWater given new life with $51.4M in capitalization and $2M renovation in Westshore Business District of Tampa.
RangeWater acquired the land and developed the 318-unit garden-style community in 2008. As one of the firm’s first development projects, Five West marked RangeWater’s first entry into Florida. After recapitalizing the asset in 2016, RangeWater designed and executed an aggressive capital improvement project.
Position Five West to compete with other high-end product in the market by undergoing an aggressive capital improvement project.
The renovation program was managed in-house by RangeWater. Approximately $9,000 per unit and an additional $450,000 for amenities was invested. These improvements included the transformation of the original clubroom into a large, modern gym, and the conversion of the former gym into a coffee and Wi-Fi lounge. Outdoor amenities included a resort-style pool with an expansive sundeck overlooking a private lake. The community offered a mix of one- and two-bedroom homes with private patios or balconies, quartz countertops, vinyl plank flooring and well-designed floor plans.
In collaboration with every side of RangeWater’s business model – from development to acquisitions and property management to asset and fund management – Five West was a successful 10-year hold with solid returns of 24.7% IRR and 1.7x EM. The capitalization project increased rental rates by over 20%. At the time of sale in late 2018, Five West was 95% occupied.
Five West highlights RangeWater’s strong investment and management strategies, which include focusing on major metro areas throughout the Sun Belt region that have positive population growth and employment demographics.