Expected time to stabilization and capex spend/unit - distressed multifamily
Hi all - looking for some help with evaluating some distressed multifamily assets for my firm. I'm new to the RE field and have a few questions about stabilizing multifamily properties. What is a typical length of time for stabilizing a distressed multifamily property? These two properties have occupancy rates of 76% and 83%, respectively, and my base case assumes a length of stabilization of 2 and 3 years respectively to reach a mature occupancy rate of 90%. This translates into signing 3 and 4 vacant units per year, respectively.
I have elevated growth capex to account for these signings but was wondering directionally, if anyone could let me know if these seem like reasonable base assumptions or if I'm thinking about this wrong.
Thanks a ton!
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