The Granite at Porpoise Bay

Strategic Marketing and Amenity Upgrade Reduce Turnover

About the Property

  • Year Built: 2001
  • Total Units: 204
  • Class: B Acquisition
  • Cost: $11.0 million
  • Renovation: $300,000


Despite this Florida property’s excellent centralized location and good physical condition, the property was underperforming. The Granite at Porpoise Bay faced wild swings in turnover due to a fluctuating tenant mix of students and young professionals. Additionally, the common amenities were substandard compared to those of competitors in the submarket.


Acting as the acquisition advisor and management agent, Lloyd Jones led the purchase of this asset from a national multifamily REIT in 2012. Analysis of the cost drivers on the asset revealed that the turnover both in process and frequency was a key problem, as was the inferior clubhouse and fitness center, often considered standard in Central Florida apartment complexes. Shifting the tenant strategy of the property could not wait for the amenity upgrade, which would take approximately six months to complete. Through strategic, targeted marketing, the tenant mix shifted toward the young professional and away from the student, and we successfully re-engineered the internal workflow and quality control within the turn process.


During the first twelve months after takeover, operating expenses were reduced by over 10%, largely due to a more efficient and less frequent turnover process. Effective income increased similarly as occupancy trended well above 95%. The amenity upgrade delivered the final piece of the puzzle, and asking rents were pushed upwards. The annual cash-on-cash return to invested equity increased almost 90% and currently stands at 14%. The projected five-year hold shows a compounded annual return of 20% and a 2.55X equity multiple upon exit.