Original underwriting was for a vacant 100-year-old D-class property to be redeveloped into a B-class apartment building, however, Epsilon took an innovative turn when we catered to Travel Nurses. After looking at healthcare locations and lodging comps, we started with just one studio apartment.

After a successful pilot, the remaining apartments underwent additional renovations and were tastefully furnished for traveling professionals, the 5-unit property became a haven for Travel Nurses and Corporate Travelers. Our focus was on fostering a vibrant and unique community spirit for like-minded working temporary residents. After acquiring for $95,000 in 2020, and $300,000 invested in improvements the asset was stabilized at 12.5% UYOC.

In 2023, our journey with Epsilon culminated with a $700,000 sale to an out-of-state 1031 investor. That exit at a 7.25% cap rate and the new business plan of corporate housing resulted in 34.8% profit.

Seeing an opportunity to execute on conservative underwriting of market rents by staying under the average by 20%, OPMI and IPI focused on the potential found in the under-managed operations. Rebranded the self-storage with the name of the local college’s mascot and quickly repositioned the 100+ unit facility for marketing to larger self-storage portfolio holders in the area to add to their holdings. In a few highly-focused months it went successful from acquisition to sale.

Sister brand Iron & Pine Investments successfully acquired and managed the class C asset, Main Street Villas, implementing strategic property management to enhance resident demographics, optimize collections, and address deferred maintenance. Through diligent efforts and capital improvements, we elevated rents to market rates, surpassing the forecasted year 4 revenue in just two years. The property was sold ahead of schedule, exceeding the pro forma sale price by over $100,000, resulting in an investor internal rate of return (IRR) exceeding 20%.