Project
Acquisition, renovation, and repositioning of the Quail Valley Apartments in Little Rock, Arkansas.

Location
In southwest Little Rock at 5300 Baseline.

Project Scope
A total of 240 one and two-bedroom apartments, ranging in size from 656 square feet to 869 square feet, situated within a 12-acre parcel. Kohner's total acquisition and renovation budget was $2.5 million.

Challenges
Located near a congested, aging retail corridor, the Quail Valley complex had suffered from years of deferred maintenance and inattentive management. Over half of the complex's tenant base was unemployed, and remarketing would clearly be a challenge. The complex needed comprehensive renovation. In addition, every unit required extensive remodeling.

Opportunities
A careful Kohner Properties analysis indicated that the Quail Valley property had a significant untapped potential for rescue and repackaging as a quality apartment complex. As such, it could fill a void for a well planned, moderately priced apartment community in this transitional neighborhood. Despite the site's initial shabby appearance and visibility problems, it boasted relatively large, spacious units, a potentially beautiful 12-acre site with towering pine trees, a salvageable two-story clubhouse and Olympic-sized pool. An aggressive, highly visible, on-site management team would be the key in turning this property around.

Solution
Over a one-year period, Kohner Properties renovated the entire complex, including totally new interior finishes for all 240 rental units and all new appliances. The renovated units feature individually metered central air conditioning, dishwashers, and walk-in closets. The two-story clubhouse was remodeled and an exercise facility added. Exterior renovations included painting, roofing, and a comprehensive signage and graphics program, along with an identity-enhancing name change (from Brentwood to Quail Valley). Extensive landscaping transformed the site into a shady oasis complete with $65,000 of new shrubbery, a new irrigation system, quaint bridge crossings over a creek, and green space barriers which visually separate the complex from nearby retail establishments. An interior designer commissioned by Kohner created two luxuriously appointed model apartments to attract quality-conscious tenants. Cost effective renovation approaches kept rents at reasonable rates: $540 for a two-bedroom unit and $440 for a one-bedroom unit.

Outcome
Quail Valley has been transformed from a deteriorating substandard development into an attractive, well-planned, and well-managed model community with a stable tenant base. From an occupancy rate of fifty percent before Kohner's acquisition, Quail Valley now reports a ninety percent occupancy.

Community Impacts
The Quail Valley apartment community has already proven to be a stabilizing force in the surrounding community, and the local neighborhood association is thrilled with the results.