2022 was a great year for Gray Property Group!
On the investment front, we created 24 newly renovated apartments across 7 multifamily properties. Our apartment renovations averaged $25K to $35K per unit and increased rents by $500 to $1,000 per unit per month, good for a 20% to 40% return on renovation cost. We have now implemented our purchase and renovation model in nearly 100 apartments and consistently achieved 12% to 16% total project cash returns. We aim to purchase/renovate or newly construct another 50 units in 2023.
Our brokerage team, led by Nick Gray, closed 19 brokerage deals in 2022 totaling over $7,600,000 in sales volume. Nick Gray was a top producer in the investment sales market, brokering 12 multifamily buildings and 3 condo rentals. Nick and Caitlin Gray also teamed up to sell single-family homes, including a record sale in Derry for $1,340,000. We helped our brokerage clients complete some successful transactions despite much market uncertainty. Our 2023 goal is to expand our sales team to 5+ full-time agents.
We continued to grow our property management portfolio in 2022, adding 52 new units. This new set of properties included several 2-12 unit multifamily properties, numerous condo rentals, a 20-unit commercial building, and a homeowner’s association. We choose to manage not only our own properties, but also those in the outside public so we can raise housing standards and help property owners and tenants on a broader scale than what our investment projects can do on their own. Our goal is to grow our management portfolio to 300 units in 2023.
To fuel our continued growth this year, we hired the following roles:
- Project Manager
- Executive Assistant
- 2 Maintenance Technicians
- Leasing Agent
This team building confronted us with some natural growing pains, but we have overcome those challenges and positioned ourselves for a smooth 2023 by adding subject matter specialists to the team. We look forward to hiring a dedicated maintenance team lead, marketing specialist, and more full-time sales agents in 2023.