Sunset Ridge has always proven to be a little challenging in terms of leasing, in that it only has one and two bedroom floor plans with one bathroom.  Furthermore, despite the interior freshness from the renovation, the units don’t offer a lot of square footage to do extensive upgrades.  Consequently, as part of this renovation, the targeted improvements were in the kitchens, HVAC, utility room and windows.  The community certainly requires targeting specific resident demographics, marketing to young professionals who value the charm, historical presence and location.  Even with these challenges over the four year term as property manager, San Miguel was able to obtain the highest occupancy experienced by the investors during their eight years of ownership.  Only the model unit remained vacant with no “down” units. 

On top of floor plan limitations that required creative, targeted marketing, San Antonio and the nation were experiencing an economic downturn that resulted in several years of lower rental rates and concessions.  Despite all this, San Miguel yielded impressive performance results with total revenues increasing 12%, controllable expenses (excludes property taxes, utilities and property insurance) only increasing 3% and NOI increasing 11%.  Excluding taxes, insurance and utilities, the NOI with controllable expenses actually increased 14%.