Stony Acres Apartments

About Stony Acres Apartments

Development Opportunity In Robust Rural Market

• Ability to add scale in supply constrained market with a development agreement in place incentivizing the construction of 85-90 additional units with TIF already in place.
• 15+ water parks/resorts within five miles of the property; 40,000+ jobs within a 30 minute drive of the property, with proximity to Baraboo employment node (Flambeau, Sysco, Seneca, Ho-Chunk Casino)
• $250M investment into new Dellshire hotel development, generating hundreds of new employment opportunities and providing an upscale alternative to traditional hospitality options
•  Over 500k sf of meeting space in the Dells coupled with 10k+ guest rooms, 100+ restaurants, and over 100 attractions have driven the expansion of the convention business, with nearly 5,600 meetings held annually by prominent organization

Household Incomes Support Continued Rent Growth

• Average HH incomes of $95,354 within a 10-mile radius allows a cushion of $954, as current rent-to-income ratio is 12 pts below the 33% threshold 
• YTD rent growth of 8.2%, propelled by the growth of households earning $100k+ outpacing the 418 class A units within a 20 mile radius of the property
• There are currently no market rate units in the construction pipeline, ensuring the stability of the existing upscale apartments in the market

Operational Upside

• Over the last 6 months, concessions have burned off, while occupancy has remained above 97% 
• Currently managed by a third party property management firm that traditionally manages smaller properties. There is opportunity to for a more marketing-focused management company to methodically increase rents, stagger leases, and manage income & expense growth 
• Opportunity to increase other income by 25-75% by breaking out utility and cable/Internet charges for each BR type, increasing the fee for underground parking, and re-purposing the large amenity spaces in each apartment building
• Ability to re-purpose several underutilized common area amenity spaces into additional 3-5 residential units