Vero Green

Renovations Transform Rent-Restricted Apartment Community into Market-Rate Competitor

About the Property

  • Year Built: 2001
  • Total Units: 172
  • Class: B Acquisition
  • Cost: $5.7 million
  • Renovation: $250,000


In early 2010, Lloyd Jones identified an opportunity to acquire a good- quality apartment community in a steady, tertiary Florida market. This particular apartment community would require repositioning from IRC Section 42, Low Income Housing Tax Credit “LIHTC,” to a market-rate, rent-driven apartment community.


Our 20+ years of active involvement in LIHTC developments enabled property ownership to navigate the three-year transition from a LIHTC rent-restricted property to a market-rate property. Moderate value-add renovations to both the interior and exterior of the property positioned the deal to compete well against other market-driven rental communities’ rates.


The property was fully converted to market rate within the federal guidelines of the three-year transition. The net operating income grew 323% during this period. Fifteen months after the initial purchase, ownership refinanced the property and received 144% of its initial equity. The projected five-year hold shows a compounded annual return of 24% and a 2.90X equity multiple upon exit.