Renovating Multifamily Properties for Sustainability

Renovating Multifamily Properties for Sustainability: The Story of Rancho Viejo Apartment

Gyani Capital's acquisition and renovation of Rancho Viejo Apartment serves as a shining example of how sustainable renovation practices can benefit both the environment and a property's financial performance. In this article, we'll take a closer look at the sustainable renovation work Gyani Capital undertook at Rancho Viejo Apartment and offer insights into how other multifamily property developers can follow their lead.

The Challenge

Renovating existing multifamily properties for sustainability can be a daunting challenge, requiring a delicate balance between environmental impact and financial feasibility. Gyani Capital faced this challenge head-on with the renovation of Rancho Viejo Apartment, which required roughly $30,000 of capital improvements per apartment. Despite the high upfront costs, they understood the long-term benefits of sustainable improvements, both in terms of environmental impact and financial performance.

The Improvements

Gyani Capital's renovation of Rancho Viejo Apartment included several sustainable improvements designed to reduce environmental impact and improve energy and water efficiency. These improvements included the installation of LED lighting, ENERGY STAR appliances, and low-flow showerheads, which reduced utility costs while improving the property's environmental footprint. They also invested in common area upgrades, such as the swimming pool, security systems, roofing, parking area improvements, new exterior paint, and bringing the complex's staircases up to code.

The Results

The sustainable improvements made at Rancho Viejo Apartment had a significant impact on the property's occupancy rate and financial performance. After the renovation, the property's occupancy rate jumped from 63% to 97% with a waiting list. The sustainable improvements also contributed to a reduction in utility costs, which helped to improve the property's financial performance over the long-term.

Lessons Learned

Gyani Capital's experience renovating Rancho Viejo Apartment taught them several valuable lessons about sustainable renovation practices. One key takeaway is the importance of balancing environmental impact with financial feasibility, by carefully evaluating the long-term financial benefits of sustainable improvements. They also learned the value of investing in sustainable improvements that also benefit tenants, such as low-flow showerheads and ENERGY STAR appliances.

Best Practices

To encourage other developers to follow Gyani Capital's example, it's important to provide tips and advice for sustainable renovation practices in the multifamily property sector. This includes working with experienced contractors and engineers, carefully evaluating the financial feasibility of sustainable improvements, and using data to track and measure the impact of sustainability initiatives.

Conclusion

Gyani Capital's renovation of Rancho Viejo Apartment demonstrates how sustainable renovation practices can benefit both the environment and a property's financial performance. By investing in sustainable improvements, multifamily property developers can reduce environmental impact, improve tenant satisfaction, and improve long-term financial performance. We encourage other developers to follow Gyani Capital's example and invest in sustainable renovation practices that benefit both the environment and their bottom line.