Elevation Financial Sells Baton Rouge, LA, Community for $16M
- Jan 29, 2019
Elevation Financial Group, via its Elevation Real Property Fund V, has sold Serenity Apartments, a 328-unit community in Baton Rouge, La., for $15.5 million, or $47,256 per unit. The transaction represents the fund’s fourth disposition. Elevation initially acquired the asset out of foreclosure in 2016, for $4 million, according to Yardi Matrix.
Serenity Apartments is located at 1251 N. Ardenwood Drive, just under 5 miles from downtown Baton Rouge. The community comprises 32 one-bedroom, 198 two-bedroom and 98 three-bedroom units, ranging from 667 to 1,180 square feet. Common-area amenities include a community room, playground, two swimming pools, laundry facilities, as well as 624 parking spaces. The two-story construction, completed in 1976, comprises 30 buildings spread on roughly 15 acres.
The community is within a short distance from several restaurants, bars and retail on Government Street, while the Baton Rouge Community College is under 2 miles away. Interstates 110, 10 and 12, also nearby, provide immediate access around the metro.
In 2016, almost half of Serenity Apartments’ units were uninhabitable and in disrepair, along with the surrounding area. During the same period, Baton Rouge experienced heavy flooding, which damaged the neighborhood and required the intervention of FEMA. Elevation Financial Group invested $3.8 million in a complex renovation of the affordable community, which included the restoration of more than 160 units, roof replacements, asphalt and concrete repair, exterior paint and the reconstruction of 10 units. Following the thorough revitalization, the community’s occupancy increased from under 50 percent to 95 percent, while rents remained relatively affordable, at an average of $680 per unit.
Photo courtesy of Elevation Financial Group