Florissant, MO | 402 Units
Class B | 1988-build
Classic value-add strategy
Throughout the past year, “home” served as a refuge for many, despite the lines that once separated work and home life blurring. In the multifamily housing market, our team knew this meant ensuring residents felt truly at home, from the moment they arrived. The team at Pelican Cove brings enthusiasm and a customer service mindset to their work every day. Their approach to apartment management created valuable relationships with residents and their community that resulted in exceptional financial performance, despite an extraordinarily challenging year.
Pelican Cove is a 402-unit apartment community, located just outside of St. Louis in Florissant, MO. In the face of unprecedented challenges, this team leveraged its superb reputation and adapted the rental experience to meet the needs of prospective residents safely. With assistance from Timberland Partners’ home office, the Pelican Cove team took steps to retain current residents by eliminating renewal increases during the height of the pandemic and maintaining rent levels to attract individuals searching for a new home.
For prospective residents, Community Manager Jackie Olczak said she and her team remained flexible and focused on making the rental experience available virtually. The team created videos that allowed prospects to tour available apartments, view community amenities, and even walk through the move-in and move-out process virtually. Having options available for a socially distanced rental process distinguished them in their local area. This proactive approach to accommodating the changing needs of renters speaks to why Pelican Cove enjoys such an extraordinary reputation in the area.
Olczak explained that Pelican Cove frequently receives word of mouth referrals and is often recommended by City of Florissant officials because of its positive reputation in the community. Because Boeing, the world’s largest aerospace company, has an office nearby, Olczak said their community often sees a lot of people moving in from out of town, and even out of state. Their ability to tailor the touring and move-in processes to accommodate virtual processes while still building meaningful relationships will impact their community far into the future. Even after the pandemic ends, Olczak said her team will continue offering virtual leasing as a convenient alternative, giving them “a little bit of an edge, especially when people are moving from out of town.”
These efforts, along with countless others, allowed Pelican Cove to maintain an average annual occupancy rate of 97 percent. Olczak and her team also worked together on managing expenses throughout the year, identifying opportunities to gain efficiencies. Leasing Consultant Areanna Shears shared that the office and service teams were in constant communication to ensure residents needs were met efficiently. Additional processes had to be added to ensure work could be completed in a way that was safe for both the team members and our residents. The team’s open communication with residents regarding service request expectations also allowed them to minimize overtime expenses by coordinating when non-emergency service requests could be completed, particularly if the request came in after-hours. Their careful scheduling efforts ultimately lead to a significant increase in net operating income.
During a year of uncertainty, the Pelican Cove team’s proactive, creative approach to community management not only made a positive impact in the lives of our residents but also contributed to meeting financial goals.
Pelican Cove’s 2020 Financial Highlights
EGI grew at 8.31 percent in 2020 over 2019
Expenses increased by only .01 percent
Net Operating Income at the property rose 17.67 percent for the year
13.3 percent annual cash yield on invested capital