Caroline Drive

Caroline Drive was originally held by the same family since construction, the asset had been operated with minimal rent growth, leaving in-place rents well below market at acquisition. With high occupancy, the property represented a prime opportunity to implement operational efficiencies and value-add upgrades.

CASE STUDY

Caroline Drive Apartments contains 52 units in La Plata Maryland and we recognized there was significant embedded value. Held by the same family since construction, the asset had been operated with minimal rent growth, leaving in-place rents approximately 17% below market at acquisition. With occupancy near 98% and limited exposure to institutional management practices, the property represented a prime opportunity to implement operational efficiencies and value-add upgrades.

Acquired at $119K/unit—roughly 60% of estimated replacement cost—Caroline Drive offered immediate upside through mark-to-market leasing, ancillary income opportunities, and a rolling renovation program targeting kitchens, baths, and general finishes. The business plan includes implementing rent optimization software, billing back utilities, monetizing storage units, and enhancing amenities to elevate property amenities and performance. The strategy drove a stabilized yield of over 7.7% within 24 months and deliver strong returns through both interim cash flow and long-term value creation.