Tudor McLeod Asset Management buys well located properties that are in good structural condition with a value-add component. We look for opportunities to increase rents and reduce expenses by finding properties that have some deferred maintenance, poor management or distressed sellers. By correcting any deficiencies and making cosmetic and management improvements, we are able to increase the net operating income (NOI) of the property and create substantial cash flow and appreciation. At the same time we are creating clean and safe environments that our tenants are proud to work or live in.
A typical project will require a 6 to 12 month period to make capital improvements, upgrade the tenant base, increase rents, and reduce expenses. At that point cash flows improve significantly and appreciation begins to increase rapidly. Once these improvements have been made we stabilize the property for another year or two and then refinance or sell the property. The entire process is usually 3 to 5 years.
Another reason for our success in repositioning is our property managers. We use only the best on-site managers with proven track records of improving property performance. Our managers think like owners – increase income, reduce expenses, maintain a clean property, and keep tenants happy. These are the true keys to success in this business.