Cimarron Ridge, a 246-dwelling residential property built in 1985, was acquired by Atlanta-based Kaufman Realty Group from Carter-Haston in November of 2011.
Located in Mobile, Alabama, the asset consisted of one, two, and three-bedroom homes across 21 two-story garden-style buildings and includes a leasing office/ clubhouse building with a business center, two saltwater pools, a car care center, a laundry facility, a fitness center, a picnic area, and a vehicular access control gate.
Long valued for its ideal port location, Mobile is a crossroads for travelers and businesses alike. As a right to work state, Alabama brings companies a highly attractive climate in which to do business. Home to numerous manufacturing and high-tech facilities, oil and gas companies, bio-medical, paper and paper product companies, Mobile offers a diverse economic base. Mobile is home to such recognizable international firms as Austal USA, Continental Aerospace Technologies, SSAB Americas and ThyssenKrupp Steel.
Located 1 mile south of Airport Road, Cimarron Ridge is in the desirable and established West Mobile submarket. Just west of the intersection of Hillcrest Road and Grelot Road, this location provides residents a brief commute to most of Mobile’s primary employment centers: Mobile Regional Airport, Providence Hospital, and The University of South Alabama.
Specifically targeting assets like Cimarron Ridge, the investment plan focused on acquiring a quality asset at a high single-digit capitalization rate based on the property’s in-place cash flow at a significant discount to replacement cost; executing targeted capital improvements to address minimal deferred and preventative maintenance designed to maintain the property’s current high level of pride-of-ownership and curb-appeal; taking advantage of the improving market fundamentals within an submarket that was already very tight on occupancy; and maintaining a specific tenant-profile and asset management strategy, which prolonged the durability of the in-place income stream.
In partnership with Kaufman Realty Group, One Stone Realty led acquisition due diligence, debt finance, business plan development, and onboarding of the third-party property management company, the Worthing Companies. After successfully executing the investment plan, the asset was sold in June of 2015.