Factors to Consider When Repositioning Multifamily Properties

Carnegie Mellon business graduate Vito Dragone has more than 15 years of experience working in real estate. As the founder and president of Dragone Realty Investments in Bethesda, Maryland, Vito Dragone acquires, rehabilitates, and manages commercial real estate. His firm has an acquisition program focused on property repositioning through rehabilitation.

Real estate repositioning is a process that aims to improve a property’s value by renovating and improving its identity to make it more attractive to potential residents and investors. When considering purchasing a property for repositioning, owners or real estate developers should consider factors like a location’s population, growth, and rental rates. Afterward, getting boots on the ground to check the property’s condition, surroundings, and the necessary changes and upgrades.

Every multifamily property owner is looking to appeal to residents, attracting new ones and retaining existing ones. Consequently, when repositioning, they should research how to do so. Among the things residents look for are properties offering modern amenities like conference rooms, fitness centers, security and video surveillance, and green technology. Easy transportation and parking space access are also attractive to tenants.

In acquiring Verona at District Heights (formerly known as Pennbrooke Apartments), a 404-unit apartment complex in Forestville, Maryland, Dragone Realty Investments executed a renovation involving significant property improvements to attract tenants. The firm added amenities such as making it into a gated community, updating the leasing office, a new grill area, and new pool house. But most importantly, all of the units were renovated to a brand-new, modern standard that was very attractive to new residents. They also made a point to choose a property close to transportation and employment areas, saving tenants’ time.