We Bought It 100% Full. Then We Let It Get Emptier.
The Setup
Toano came to us fully leased. Twenty-seven identical 660-square-foot bays, not a vacancy on the page. By the only metric most operators quote, the property was already perfect.
The rent roll disagreed. All 27 units were occupied and the property collected $9,632 a month — $357 per unit against a $660 market. Sixteen of the nineteen leases had the same entry in the lease-end column: Expired.
That is not a stabilized asset. That is a sold-out show where every ticket went at the door for five dollars, when they could have easily sold for ten.
What We Did
We set one market price — $660. Every lease that came up got the number. No grandfathering, no side deals, no exceptions for length of tenure.
Then we made the property worth $660. New signage. Full landscaping. Security cameras across both buildings. A cleaning standard that holds, and a turn process fast enough that a vacated bay is back on the market in days rather than months. Every new tenant credit-screened before they get keys.
Some tenants left. We let them. Raising rent 70–86% did not empty the building. It emptied two units — and most of the original tenants stayed and renewed at the new number.
What It Produced
| Measure | Starting Point | Latest | Change |
|---|---|---|---|
| Occupancy | 100% · 27 of 27 | 92.6% · 25 of 27 | The trade we made |
| Monthly rent | $9,632 | $14,540 | +$4,908 / mo |
| Average rent per occupied unit | $357 | $582 | +63% |
| Annual rent per occupied SF | $6.49 | $10.57 | +63% |
| Leases sitting expired | 16 / 19 | 4 / 19 | 85% now dated 2027–28 |
| Average monthly NOI | $6,834 | $10,255 | +50% |
At acquisition vs. September 7, 2026. We gave up two units and picked up $4,908 a month — $58,896 of additional annual scheduled rent from a property that was already "full" the day we bought it.
Why It Worked
Occupancy is not performance. Occupancy is a number that goes up when your product is priced well below market. Full at the wrong price is not a win.
In-place rent was 54% of market at acquisition. It is 82% today — and the remaining $3,280 a month breaks down cleanly, none of it requiring new capital: two vacant bays worth $660 each, one legacy five-unit block still at $400, and one new tenant inside a lease-up concession period. Capturing it adds $39,360 of annual scheduled rent.
DISCLOSURE. This case study is provided for informational and investor-education purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security or fund interest. It presents historical, property-level information drawn from dated rent rolls, property financial statements, and third-party appraisal or offering materials. Dollar figures are rounded and should be read as of the stated dates; percentage changes are calculated from unrounded source amounts. Historical results and property-specific outcomes are not guarantees of future performance. Nothing herein constitutes investment, legal, or tax advice.
Property-specific source note: Figures are property-level, drawn from the dated rent rolls and property financial statements referenced above, and should be read as of those dates. Scheduled rent is not collected revenue and is not net operating income.
