LSCRE acquired Cranbrook Forest in July 2018 to deliver value-add returns for investors over a projected three-to-five-year hold period. We identified this as the ideal time to enter a Class C investment and capitalize on market momentum, as rent growth was strong and property values were steadily appreciating.

We acquired the property at a discount to market value due to its 70% occupancy and below-market rents. We then implemented a comprehensive value-add plan—renovating interiors and enhancing exterior curb appeal—which allowed us to successfully raise occupancy to over 90% and increase rents by nearly 20% within the first year of ownership.

Additionally, because the property originally lacked any onsite or in-unit laundry facilities, LSCRE installed washers and dryers in all units, creating a significant competitive advantage in the submarket. We also added a business center, playground, dog park, and poolside summer kitchen, while upgrading the fitness center to 24-hour access. To ensure resident safety, we enhanced security by installing cameras and LED lighting and moving a courtesy officer onsite.

Ultimately, LSCRE addressed substantial deferred maintenance—including carpentry, iron work, concrete, and electrical repairs—resulting in a 53% increase in net operating income (NOI). In December 2021, LSCRE sold Cranbrook Forest for $22.1 million (against a $15.4 million purchase price), delivering a 19.8% average annual return for investors over a nearly 3.5 year hold period.