Our Featured Client Case Studies

APARTMENT RENOVATION

A Case Study of the financial gains from improving an existing apartment complex.

Ashton Companies has worked as a partner with many Property Management Companies and investors in the Salt Lake Valley to renovate existing apartment complexes in order to increase rent revenues. This case study summarizes one example.

MARKET OVERVIEW

THE VALLEY NEEDS MORE HOUSING UNITS! The robust economic and demographic growth in the Salt Lake City area is creating an interesting dynamic in the multi-family market. Increased demand and shifting housing preferences has resulted in exceptional demand for apartments in the region. Since 2014, more than 27,000 new apartment units have been developed. But with Utah facing a shortage of over 50,000 units of housing this increase just can’t up with the demand.
RENTS ARE INCREASING! In 2000, the average rent for an apartment in Salt Lake County was $647 per month. By 2018, the average rent increased to $1153 per month. This upward trend looks to be continuing into the 2020’s. Combine this with surprisingly strong demand for luxury apartments rentals near the urban and employment centers located near downtown Salt Lake City, or in the southern part of Salt Lake County near Point of the Mountain, there has never been a better time for owners and investors to improve some of the dated multi-family units in the valley.

EXISTING APARTMENT SUMMARY

The Glynhill Apartment Complex near downtown Salt Lake City was built in 1952. Although some updates had been made over the years, the 56 units were dated and unappealing to the demanding demographic of renters in the area. The owners decided to invest money now in order to attract high-quality renters who are willing to pay premium rents to be located so conveniently to the urban center.

ASHTON COMPANIES’ PLAN

Ashton Companies is a team of three companies that can address all needs of this apartment renovation.

AC Architecture provided feasibility studies on the geographical area and what the city requires for renovations in the historic area. Once we knew the city expectations could be met, our team of architects provided as-built drawings, proposed architectural plans and coordinated with qualified engineers to make sure that all structural and mechanical areas are addressed properly. Finally, our team followed the project through the city licensing process.
AC Contracting worked with the property owner and property manager to create a realistic estimate for the project. Once the city approved the architectural plans, our project manager worked to finalize the budget and negotiate contracts with qualified subcontractors for all aspects of the work. The Ashton Companies team managed the process throughout the entire project build.
AC Builders is the in-house labor arm of Ashton Companies. Having laborers who are AC employees helps us keep schedules and budgets tight. Plus it makes it easy for the AC Contracting Project Manager to set expectations and manage the crews. We were able to use AC Builders employees to perform demolition, framing, finish carpentry and construction clean-up on the project.

PROJECT SCOPE

The plan for renovation of Glynhill Apartments includes complete renovation of each of the 56 apartment units as well as a facelift to the interior common areas.

PROJECT BUDGET

The plan for renovation of Glynhill Apartments includes complete renovation of each of the 56 apartment units as well as a facelift to the interior common areas. Approximate numbers are in the following table.