NOI up 70% in two years

When Kleinman took over this property on January 1, 2019, its owner, a Kleinman client since 2011, wanted the property to compete with the best rentals in St. Paul.

Kleinman ran an ambitious interior program: 48 units remodeled in 2019 alone, and 88 of 90 by the end. Renovating that much of a building usually means empty homes, but occupancy held between 93% and 97% throughout and finished at 97%.

Residents responded to the new product. Remodeled homes re-leased for a median $180 more per month, compared with a 2.2% increase on a normal turnover. Average in-place rent climbed from $899 to $1,140 in under two years, and net operating income grew from $382K in 2019 to $647K in 2021.

By the numbers

• 88 of 90 units remodeled
• Average rent: $899 to $1,140 (+27%)
• Remodeled homes: +$180/month (median)
• NOI: $382K to $647K (+70%)
• Occupancy held at 93% to 97% during renovations