What a year it’s been! Despite macro headwinds, it has been an excellent year for the Convolo Capital team and our investors. We want to wish all our investors and partners a Merry Christmas and a Happy New Year! We thought it’d be great to provide a brief recap to our investors about this year.
2024 Convolo Capital Highlights:
Acquired Park Oaks, a 40-unit duplex community in Athens, GA
Acquired Woodwind Apartments, a 64-unit community in Irving, TX.
Rebranded our logo and color scheme and revamped our quarterly report.
Partner’s move to full-time after leaving W-2 roles.
Park Oaks:
Park Oaks closed in February of 2024. This 40-unit, spacious property sits in a quiet 23-acre community with excellent curb appeal. Our value-add plan is to improve the unit interiors and cut down on the significant loss to lease.
The property located in Athens, GA was built in 2001 and is located off Highway 441 which connects to fast-growing Jackson County. We purchased with an assumable 3.57% rate and added a supplemental loan. The property boasts an excellent tenant base and we are excited about how the property is projected to perform from our underwriting.
Woodwind Apartments:
Woodwind Apartments, a 64-unit property acquired in September 2024, is located in a prime area of Irving, Texas, part of the Dallas-Fort Worth Metroplex. Positioned across from schools and near restaurants and entertainment, the property benefits from excellent accessibility and Irving's strong economy, often referred to as the “Headquarters of Headquarters” due to the influx of corporations and local investment.
Our value-add plan focuses on renovating unit interiors, enhancing curb appeal, and optimizing amenities. Approximately 22% of units have been upgraded, achieving $100–$300 rental premiums, with an opportunity to add over $1 million in value by completing 32 additional upgrades. Rent alignment also presents a significant upside, as long-term resident rents trail market rates by $150+, translating to an annualized loss-to-lease of over $100,000.
The property was purchased with Freddie Mac financing and a step-down prepayment penalty, allowing flexibility to refinance at a lower rate in the future. Offering a desirable mix of layouts and amenities typical of Class A properties, Woodwind combines value-add potential with strong market fundamentals, making it a strategically positioned investment with room for substantial growth.
Convolo Rebranded:
The Convolo team underwent a rebranding effort, transforming our old makeshift logo and color scheme into a polished, professional identity that better reflects our vision and values. The new logo and updated color palette were carefully designed to convey professionalism, innovation, and trust, aligning with the growth and evolution of our brand. This refreshed visual identity represents a significant step forward as we continue to build a strong and recognizable presence in our industry.
Full-Time Convolo:
This year marked a pivotal moment for Stephen Quesinberry and Jeremy Thomason as they made the leap from their roles at CAF Capital to dedicate themselves fully to this business.
It was a decision born from both careful consideration and an alignment of opportunity and timing. After years of building experience, cultivating relationships, and refining their approach to commercial real estate, Stephen and Jeremy recognized that the market conditions and their own readiness converged to create a unique window to focus exclusively on growing this venture.
This transition wasn’t just about career change—it was about seizing the chance to channel their expertise and passion into a business they believe has extraordinary potential to deliver value for investors and build lasting impact in the communities they serve.
Quarterly Reporting:
During the year, we’ve continued to invest in our quarterly reporting and monthly updates to enhance our communication with investors.
Our team has experience as Limited Partners, and we understand that clear and consistent communication is fundamental to running a successful real estate business—a principle we are deeply committed to prioritizing.
To read more about our Investor Experience we invite you to read here:
Asset Management Highlights:
The team has grown considerably in our Asset Management expertise, a function that Convolo deems as the most critical in our business. At Celeste on North, we completely transformed the exterior turning a C Class property into a modern visually appealing place to live for students and young professionals.
Our team visited each property every month during the year, each time providing feedback to our Property Managers, which ups the expectation level and ensures our goals are being met.
At each of our properties, we’ve focused 2023 efforts on maximizing retention in the face of macro headwinds and potential recession. Turn costs have risen dramatically making it more appealing to keep tenants in place with less renewal growth.
We made the decision this year to replace the property manager across all our Athens properties. We conducted an extensive search and ultimately selected Resource Property Management. Resource currently manages another one of our properties, McClure Springs, where they have consistently delivered strong results, maintained high occupancy and successfully implemented initiatives. Their proven track record gives us confidence in their ability to bring the same level of ownership and proactive management to these properties. We are excited about the transition, which will take effect on January 1st.
2025 Year Ahead:
As we look ahead to 2025, we remain optimistic about the opportunities within the market. While challenges persist, they also bring with them the chance to acquire high-quality assets that align with our long-term strategy.
Our approach will continue to prioritize selectivity, ensuring that every investment meets the rigorous standards we’ve set for location, value creation, and potential returns. We are committed to pursuing assets that not only perform well financially but also contribute meaningfully to the communities they serve.
By staying disciplined and focused, we believe 2025 will present us with the right opportunities to build on this year’s successes and deliver exceptional results for our investors.
Merry Christmas & Happy New Year:
As we close out this year and look forward to the next, we want to take a moment to express our heartfelt gratitude to all of our investors. Your trust and partnership are the foundation of everything we do, and we are truly honored to have you on this journey with us. From all of us here, we wish you and your families a very Merry Christmas and a Happy New Year. May this season bring joy, peace, and prosperity as we step into 2025 together.
Stephen, Jeremy, Jamie & Curtis
The Convolo Capital Team
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