Press Release (ePRNews.com) - SAN ANTONIO - Feb 05, 2020 - A joint-venture (JV) owned by Argosy Real Estate Partners (Argosy) and InvestRes has engaged Kairoi Residential to provide property management services for Kingsland West, a 305-unit, Class-A apartment community in the Katy submarket of Houston, Texas. The engagement represents the JV’s second assignment for Kairoi Residential, which took over management of The Preserve at Westover Hills (Preserve), a 276-unit apartment community in San Antonio, Texas, in August 2019.
The JV purchased Kingsland West in November 2018. The property suffered significant water damage from Hurricane Harvey (August 2017) and fell to 55% occupancy when all first-floor units (90 total) were taken offline for repair. The seller completed all repairs prior to the sale. According to Joshua Cohen, Vice President with Argosy Real Estate Partners, lease-up back to a stabilized occupancy has been slower than anticipated due to the delivery of three new apartment communities in the greater submarket and a post-renovation lease-up of a direct competitor also damaged by the storm. The JV sought an experienced property management firm with a strong track record of leasing in the submarket and the skill to oversee capital improvements to position the asset competitively. “Kairoi Residential’s preparation, attention to detail and communication during the management transition at Preserve really impressed our team. Regional Manager Nadia Scardino and a newly assembled on-site staff worked together to address identified deferred maintenance issues and enhance the customer service experience at our property. The quality and volume of our leasing traffic have greatly improved and we’ve seen a significant uptick in resident renewals.”
While the decision to hire Kairoi Residential to manage Kingsland West was primarily based on their demonstrated performance at Preserve and their experience in the Katy submarket, the executive management’s team engagement has been a critical part of the smooth transition there. “Kairoi’s team reviewed the business plan and understood the action items necessary to accomplish near-term goals,” said Cohen. “The team focused on improving operations by hiring quality leasing and maintenance personnel, small details – like furnishing attractive mini-models in vacant units, and executing an outreach marketing plan strategically focused on renter demand generating local businesses. The initial changes have resulted in improved traffic and resident renewals and is expected to generate stronger leasing this spring. Kairoi Residential’s strategic advice based on market analytics and focused attention to detail has far exceeded the typical level of service provided by third-party management firms.”
“Every owner has different goals for different assets and we get that,” said Tammy Freiling, Executive Vice President for Kairoi. “It fits in well with our approach of acting as a steward for each community on an individual basis. Kingsland West is part of an opportunistic fund strategy Argosy put together with private equity. It has specific revenue goals and our boutique management style allows us to adjust as needed to hit their projected returns.”
Argosy Real Estate Partners is part of the Argosy Capital fund family, which has $1.3 billion in assets under management. Argosy invests in multifamily, commercial, lodging and residential opportunities throughout the United States. The company partners with experienced operating partners like InvestRes to create value through the acquisition, development, repositioning and/or recapitalization of real estate assets.
Kairoi Residential is a premier, vertically integrated, multifamily investment, development and property management company headquartered in San Antonio, Texas. Since 2003, the partnership has transacted on $4.3 billion across over 50,000 multifamily units in multiple cities and states across the country. The company just began offering its boutique property management services this year to sophisticated owners looking for a targeted level of intelligence and strategy for each asset.
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