At the time of purchase in 2012, Northwest Crossing was in foreclosure and in significant need of capital. The bulk of the complex was still in its original 1968 condition and just prior to foreclosure, the property sustained significant fire damage. Despite a strong submarket location, the overall condition of the property enabled Core to acquire Northwest Crossing at a significant discount. Renovation was extensive–at completion, the renovation work was nearly 30% of the purchase price.
Upon acquisition, capital improvements were initiated and new management was put in place. One year after purchasing Northwest Crossing, occupancy was up 15%, rental rates were well ahead of pro forma estimates and the capital expenditure and repositioning plan was $1 million under budget. At the end of 2013, net operating income had increased by 75%; after a debt refinance, investors received a full return of capital.