Water usage at the Gardens at Manchester is down about 60 percent since acquisition, which translates to roughly $50,000 of annual savings.

Water usage looked abnormal during diligence, and Tack discovered 17 active leaks across the property. These were repaired and every shower head and toilet was replaced with a water-efficient version. Property owners typically pay for water on behalf of residents, so the savings flow straight to the bottom line. Assuming a conservative 7 percent cap rate on the annual savings implies that more than $700,000 of property value was created just by reducing this expense, on top of the extra annual cash flow.

Tack is under contract on another off-market acquisition. New opportunities keep surfacing, but most of Tack’s current focus is on the two acquisitions under contract. Assuming these close, the immediate focus will stay on executing them rather than chasing new deals.

There are not many new developments across the existing portfolio. However, the sale process for Brookside Townhomes, a Sweetbay investment, launched last week. The property has performed well, and just over half the units have been renovated, providing a blueprint for the next owner.