Ridgewood Run

Investment Overview

Ridgewood Run presents a compelling value-add opportunity to acquire a partially repositioned multifamily asset with significant capital improvements already completed and a clear path toward operational stabilization. Current ownership acquired the property in October 2023 with a business plan centered around renovating the asset, improving the tenant profile, and driving rental growth. At acquisition, Ridgewood Run was approximately 50% occupied with average monthly rents of just $515. Since taking ownership, the seller has invested approximately **$464,587 in property improvements** and successfully increased average monthly rents to **$810.19, plus a $25 utility fee**, representing rent growth of approximately **57%**. While still leaving room to push some rents closer to market at $895. Occupancy reached as high as **86%** during the current ownership period, demonstrating the property's ability to support both higher rents and improved occupancy. Today, the property is approximately **69.3% occupied**, creating an opportunity for a new owner to build upon the seller's completed capital program and capture additional upside through improved property-level operations, leasing, and hands-on management. Current ownership originally implemented an off-site third-party management strategy; however, the property's operating history has demonstrated that a more active management approach may be better suited to the Chester tenant base. Rather than internalize property management, ownership has elected to bring the asset to market. In addition to the operational upside, Ridgewood Run benefits from a **10-year property tax abatement extending through 2034**. Ownership currently pays approximately **$2,970.92 per month to SAHA Housing**, the nonprofit partner associated with the abatement. According to ownership's legal counsel, the existing structure is transferable through an entity sale, allowing a prospective purchaser to benefit from the remaining term of the abatement, subject to buyer verification and legal review. There has been substantial renovation capital already invested, demonstrated rent growth, a favorable tax structure through 2034, and meaningful upside in occupancy. Ridgewood Run offers an incoming investor the opportunity to acquire an improved asset below stabilized operations and create value primarily through **management execution, lease-up, and operational stabilization rather than a heavy capital renovation program**.

Investment Highlights

• Significant Capital Already Invested: Approximately $464,587 in renovations and property improvements completed under current ownership.
• Proven Rent Growth: Average rents increased from $515 at acquisition to $810.19 today, representing approximately 57% growth.
• Additional Rent Upside: Current average rents remain below the approximately $895 market level, providing additional organic revenue upside.
• Lease-Up Opportunity: Current occupancy of 69.3% provides meaningful upside through improved leasing and hands-on property management.
• Demonstrated Occupancy Potential: Occupancy has reached as high as 86% during current ownership, demonstrating the asset's ability to support stronger stabilized performance.
• Operational Value-Add: The opportunity centers on management execution and stabilization rather than a capital-intensive renovation strategy.
• Favorable Tax Structure: Existing 10-year tax abatement extends through 2034, with current payments of approximately $2,970.92 per month to the nonprofit partner.
• Potentially Transferable Abatement: According to ownership's counsel, the tax-abatement structure may transfer through an entity sale, subject to buyer verification and legal review.
• Compelling Basis for Next Owner: Acquire a substantially improved asset with the heavy renovation work largely completed and capture remaining upside through lease-up, rent growth, and operational efficiencies.