DALLAS, Aug. 12, 2015 /PRNewswire/ -- Construction began on Oakland Hills Apartments in October 2013; it received the first certificates of occupancy in January 2014. October is not an ideal time to begin leasing a new construction apartment community, even in southern Texas. Prospective residents are not as inclined to move during the school term with winter weather and the holidays at hand.
MacDonald Companies Inc. decided to incorporate an apartment revenue management software service to assist in the challenge. They selected RentPush.com®, a division of software developer and Internet services provider Spherexx.com®, which has been serving the multifamily industry since 2000. As the lease-up commenced, MacDonald soon discovered how RentPush was not only a pricing advocate; it was also tailored to balance lease expirations and reduce vacancy loss by narrowing lease versus occupancy dates and by incorporating many key performance indicators. The software's algorithmic formula operates within the owner's specific control parameters to determine absorption versus price and term for the best outcome. RentPush was also quick to adapt to changes in delivery schedule, which are common in apartment construction.
A year later, Oakland Hills was 97% occupied, having achieved a stabilized occupancy of 93.3% in just seven months. Rent per occupied unit increased by 15.4% during the first year. The resulting actual rent per occupied unit exceeded pro-forma by $50 per unit, which generated an additional $83,700 in annual income. When applying a 6.5% capitalization rate, the gain equaled a value of 1.3 million over projections.
"RentPush was literally worth a million dollars to us," says Ed Partridge, CPM®, HCCP, Asset Manager for MacDonald Companies. Mr. Partridge discusses how Oakland Hills advanced in a video interview located at RentPush.com/MCD. A copy of the Oakland Hills Case Study is also available for download at this location.
Readers can see the interview with Ed Partridge as well at https://www.youtube.com/watch?v=kUjB9cpfbts
MarketSurveyTools.com™, a division of Spherexx.com that analyzes and acquires aggregated market data for subscribers, reported a 2.1% increase in net rents between October 2013 and October 2014 for apartments within a fifty mile radius of Oakland Hills, representing eighty-seven apartment communities in parts of San Antonio, Universal City, Live Oak, Selma, Converse and Schertz. Oakland Hills increased 13.3% over market trends.
About RentPush.com div Spherexx.com
RentPush is asset optimization software based on scientific modeling and simulation combined with operational controls, performance goals, compliance platform, ROI monitoring and forecasting. It won the 2014 Multi-Housing News Technology Choice Award for Revenue Management.
About MacDonald Companies Inc.
MacDonald Companies Inc. is a family-owned group of companies specializing in developing, building, and managing multi-family neighborhoods across Texas. They are committed to build with sustainability, quality and comfort in mind. For thirty years, MacDonald Companies has been actively involved in development of subdivisions, including the installation of streets and utilities, as well as the construction of single family, multifamily, and commercial units.
MacDonald Companies is a member of the National Association of Home Builders' (NAHB) and serves on the Rural Housing Council and Multi-family Council, along with state and local government affairs committees.
SOURCE MacDonald Companies Inc.