Dakota Canyon
- Santa Fe, NM
Juniper expands outside of the traditional scope of its portfolio with the acquisition of Dakota Canyon in April 2017, marking the firm’s expansion to New Mexico and the Santa Fe submarket.
Business Plan & Approach
This acquisition was notable as Dakota Canyon was outside the traditional scope of Juniper’s portfolio, which had transitioned to focus primarily on Texas, Oklahoma, Arkansas, and Louisiana. Through strategic management and focused efforts on property management, Juniper aimed to unlock Dakota Canyon’s latent potential and achieve a strong return on investment.
Acquired 2017
Status: Sold 2020
The Results
Over a brief three-year period, Juniper and First Choice successfully raised monthly Net Operating Income (NOI) from a low of $60,000 to almost $80,000. Moreover, Dakota Canyon transformed from a significantly under-rented property to achieving over 98% occupancy.
Investors injected $3.6M of equity into the asset and exited with a 1.9x equity multiple and a 25% internal rate of return (IRR).
Dakota Canyon showcases Juniper’s capability to quickly rectify property management issues and improve asset value, while concurrently expanding into adjacent markets.
While the average hold period of Juniper dispositions is nearly six years, the goal is always to maximize value creation and realize returns on an appropriate timeline as determined by the investment profile and asset performance.
all-in cost
$11,500,000
original equity
$3,600,00
Renovation budget
$630,000
Year Built
1992
total units
120
avg sq. ft. / unit
635
units renovated
None
Starting rent
$860
ending rent
$1,025
hold period
3 Years
