Red Oak Capital purchased a vacant two-story, 80-unit walk-up hotel, which presents a value-add opportunity to repurpose the hotel into a two-story, 96-unit multifamily complex contained within five buildings. Purchased at a significant discount, the distressed, foreclosed property is located in a popular residential neighborhood considered to be a gateway to Atlantic City, which enjoys a large seasonal influx of residents, low vacancy rates and rising rental rates for the surrounding mixed-use properties. The post-renovation project will include 96 units, 20 percent of which will be designated affordable units.
The scope of work to complete renovations includes creating 40 studio apartments and 56 one-bedroom units. All units will have ceramic tile, quartz countertops, and custom cabinetry in the kitchens, ceramic tile in the bathrooms, and hardwood floors in the rest of the apartment. In addition, the property will have all new roofing, driveway, and landscaping.