Willowind Apartments

Quarterly Investor Report
(Q1 2024)

Thank You!

Thank you for investing alongside us in Willowind Apartments! We are committed to keeping you in the loop regarding all steps of our business plan for this asset. You can anticipate quarterly reports like these throughout the duration of the investment.

We are encouraged with the progress. This report reflects our progress and financials for Quarter 1 of 2024- our first full quarter of ownership.

If you ever have any questions, feel free to reach out to Caleb via email (caleb@oakiq.com).

Progress Update:

We are excited to share some significant updates on the progress of our investment at Willowind Apartments. As part of our commitment to enhancing value and appeal, we've embarked on a strategic rebranding and renovation initiative. 

Here are the key developments:

Rebranding Initiatives:

We have officially renamed Willowind Apartments to Villa Park Apartments. This rebranding effort is more than a name change; it represents a comprehensive enhancement of the property's identity and market positioning. We are currently updating all marketing materials, online search engine listings, our website, and property signage to reflect the new branding. These changes are essential to attract the right demographic and improve our online visibility.

Check out the new website for Villa Park Apartments (formerly Willowind Apartments): villaparkapts.com

Property Improvements:

Leasing Office Renovation: The renovation of the property leasing office is complete. The new space is designed to be welcoming and functional, serving as an effective sales tool for prospective tenants. 

Parking Upgrades: The covered parking structure scheduled for demolition has been successfully removed, and the parking lot repaving and new striping are now complete. These enhancements not only improve the aesthetic appeal of Villa Park but also contribute to a better tenant experience.

Unit Renovations: To date, we have renovated 11 units, with an additional 4 units expected to be completed by the end of April. This will bring our total to 15 completed units. Looking ahead to May, we plan to renovate 7 more units. These modernized units are critical to increasing rental income and attracting new tenants.

Occupancy and Leasing Strategy:

Current occupancy stands at 80%, a strategic level that allows us to renovate units effectively without significant disruption to our community. This controlled vacancy rate is temporary and necessary for our long-term strategy to enhance the property. With our new branding and targeted marketing campaigns kicking off, we anticipate increased demand during the upcoming leasing season. Our approach ensures that we maintain at least 80% occupancy by strategically relocating existing tenants to renovated units at new market rates and filling vacancies with new tenants. This strategy avoids significant occupancy dips and supports stable cash flow.

Maintenance Updates:

During our roof inspections, we identified a few areas in need of repair. These repairs are scheduled for completion in April. Fortunately, the overall condition of the roofs is good, with only minor repairs needed, ensuring no significant future expenditures in this area.

Looking Forward:

As we move into the peak leasing season, our team is optimistic about the impact of the recent improvements and rebranding efforts. We are committed to managing renovations in tandem with leasing activities to optimize occupancy rates and enhance the overall value of our investment.

(Q1 2024)

Account Statement & Financial Updates

Account Statement:

Accessing your most recent investment account statement is as easy as 1-2-3:

  1. Login to your portal account at:
  2. Select “My Investments” from your dashboard
  3. Click “Account Statement” in the upper right hand corner to view and/or download

Financial Update:

As we continue deeper into our business plan, we are encouraged with this quarter’s overall financials. We have been able to achieve higher than budgeted revenue, while maintaining lower than budgeted expenses. We are still early on in the business plan, and are comfortable with a continued short term decline in revenue as we turn more units, as well as anticipating an uptick in expenses as we continue to renovate. 

However, we are maintaining the trajectory of our initial business plan to renovate and stabilize 5-8 units per month. This should allow us to maintain stronger total revenue, while still achieving our renovation timeline at, or below, budget.

We are encouraged with this quarter's financial report, and believe that you will be as well.

Explanations and Commentary:

As you view this quarter's financial reports, we have provided commentary on a few important things to pay attention to:

  • (-$47) variance on Average Rent Per Unit:  Our revenue is higher than budgeted, although the average rent per unit is slightly below our projections. This is because when we acquired the property in late 2023, it had a high occupancy rate of 98%. During the initial months, we chose not to force vacancies due to the seasonally low leasing period around the holidays and cold weather. Consequently, we maintained higher occupancy with existing rents, delaying our planned rent increases until the leasing season picked up. This strategy, while temporarily impacting average rent levels, optimized overall revenue by reducing projected vacancy.
  • OPEX: Currently, our Operating Expense budget includes some of our unit renovation costs- such as unit turn costs. As we progress through the business plan, our intention is to further separate our reporting on those expenses for even greater visibility to our investors. This is partially why OPEX, although below budget, is overall “higher than normal” for a property like this. Additionally, our accounting for Q1 has been on a “cash-basis” rather than an “accrual-basis.” Consequently, the accrued property tax and insurance is not accounted for in this report, as those are annual expenses not paid during Q1. Lastly, we have in our OPEX budget some contingencies for various unexpected expenses. Having fewer unexpected expenses (a good thing) contributes as well to OPEX favorability for Q1.
  • Overall Positive Variances: As previously mentioned, our strategic choice to take a more conservative approach toward vacancy creation in the holiday/colder months has led to lower than budgeted OPEX and CapEX, and higher than budgeted revenue and NOI. Even with a less aggressive first few months, we remain optimistic in achieving our overall timelines for renovations and rent increases.
  • Conclusion: We believe that our commitment to remaining highly active and “hands on” in our business plan is reflected in these financial reports. Rather than forcing vacancy on a more aggressive timeline, the team is working with a balanced approach to maintain strong revenue while continuing to enhance the value of the property. 

Sincerely,

The Oak IQ Investments Team
Aaron Leatherdale
Founder & CEO
Caleb Edwards
Managing Partner, Head of Equity

our podcast

Unlock Entrepreneurial Freedom

Own The Exit is your quintessential guide to entrepreneurial freedom. Every entrepreneur aspires to build a prosperous business while enjoying financial and time freedom, but the reality often falls short. This podcast is your lifeline to success, providing crucial insights on preparing your business for a winning exit.