Building a scaled portfolio in one of the most demand-rich U.S. real estate markets
Opportunity
Corridor identified the workforce housing space in Naples, Florida as a target market based on attractive supply / demand dynamics and high barriers to entry. To date, two complimentary multifamily properties totaling 199 units have been acquired at an attractive blended basis, allowing for streamlined operations and pricing power for value-add renovations.
Strategy & Action Steps
By making inroads with local players and leveraging broker and lender relationships, Corridor successfully entered the Naples market in 2016 through the acquisition of Jade @ Olde Naples, and added a second asset in 2021, Stillwater Cove. Both properties mostly cater to residents employed in Naples’ service economy, an underserved segment of the population with minimal housing optionality. The business plan for both assets involves renovating unit interiors to enhance resident experience with rents priced appropriately based on area incomes.
Outcomes
Based on local market feedback, the value of Jade @ Olde Naples has approximately doubled since acquisition based on the physical upgrades to the property and continued market growth. Stillwater Cove is currently undergoing heavy renovation activity, but early leasing results show an average premium of 55% over prior leases.
Corridor continues actively looking for new deals in Naples to enhance the economies of scale.
