Background
Acquired in distressed condition, Aurora underwent a full gut renovation that introduced top-of-the-line finishes, in-unit washer/dryers, and a common rooftop amenity. Delivered ahead of schedule and under budget, the repositioned asset achieved full lease-up above projections.
Pre‑Aura Metrics
Purchase Price
$4,700,000
$393 PSF
Projected RR
$1,100,000
Annual RR Projections
Underwritten PSF
$92
Projected blended average
Market Position
New development walk-up with w/d in unit
Launched in December 2023
Challenges
- Delivered in December 2023 during New York’s slow rental season, risking weak absorption and lower rents
- Building lacked the amenities package that many midtown competitors offered, making it harder to justify premium rents
- The winter cycle results in lower rents and recurring lease expirations
Solutions
- Strong marketing and data-driven analytics allowed us to constantly monitor performance and achieve the highest rents possible, with a 5% premium, despite seasonality
- We emphasized modern unit finishes, boutique-style living, and prime location to demonstrate value beyond amenities
- Implemented 18-month lease terms to align renewals with the summer market, securing higher rents and enhancing long-term asset value
Results After Aura
Sale Price
$11,750,000
Exit Psf: $1,175
Equity multiple 1.74x
Equity multiple 1.74x
Total Annual RR
1,144,100
Exceeded annual projections by 5%
Average Rent PSF
$96
5% over projections
Market Position
Fully leased up in 30 days
Full building leased up in record timing, during the slowest cycle of the year
Key Takeaways
- Achieved a full lease-up in 30 days during the winter cycle
- Secured rents 5% above projections, outperforming seasonal expectations
- Assisted on select buyer showings, as prospective purchasers wanted to meet the leasing team responsible for achieving the premium rents
- Invested alongside ownership as proof of concept, helping attract millions in follow-on capital from other investors for subsequent projects
Aura New York
Aura New York is a brokerage designed for landlords by landlords. We streamline the leasing process in NYC through smart technology, tailored strategy, and advanced marketing.
Contact
Shiv Babani
CEO & Founder | Aura New York
CEO & Founder | Aura New York