What is CORR Strategy and How Does It Work?

Innovation and entrepreneurial thinking are key drivers for Chicago real estate investment firm RUME USA, creating investor value through a commitment to process and technology in real estate. RUME USA offers a proprietary value creation strategy that drives net operating income while mitigating risk, known as the Community Occupied Rapid Renovation (CORR) strategy. The strategic program was created out of opportunity, as a way to circumvent supply chain issues 10 years ago.

The real estate investment firm decided to turn the industry on its head creating and implementing the CORR strategy. Because of supply chain problems, RUME decided to shortcut the supply chain. By doing the remodeling onsite, in one day, by a team of RUME employees ensures quality control and consistency of high-end materials across units. Rather than relying on outside resources that don’t have the capability to provide the same materials and service necessary for profitability.

The program wasn’t out there, so RUME created the ideal program. Successfully, implementing the proprietary CORR process and innovative operating system to manage projects, developing a sector-specific business intelligence and process that is second to none.

Why RUME USA Implemented the CORR Strategy

Cutting out the supply chain, the team realized RUME could mitigate vacancy loss and income loss by doing renovations in place while the tenant lives there, as opposed to during tenant turnover.

With the CORR strategy, the process alleviates income loss and vacancy loss during repositioning, while achieving new stabilized value in a shorter time period. Before CORR the ability to keep income stable during repositioning was unheard of.

The industry norm, on the other hand, is to clear out upon end of lease, leaving the unit empty while renovations are done. This isn’t profitable, and doesn’t add value.

What Makes RUME’s CORR Strategy Successful?

RUME USA started the CORR strategy with one tenant and built it to four tenants. Now RUME completes up to four units per day and 20 units per week with the ability to renovate multiple projects at multiple locations concurrently.

RUME uses its own team of contractors that are incumbent to the company directly, executing the business plan, across the country. They don’t leave until it’s done, getting the entire scope of the interior renovation completed. Concurrent to that, the RUME teams renovate the exterior, common areas, and various amenities without occupancy interruption.

Since 2010, RUME has owned, managed, and re-positioned nearly 4,500 units across the country utilizing the CORR strategy, with the goal of enhancing the value of the company’s multifamily assets.

Learn How RUME USA’s CORR Strategy Can Enhance Your Portfolio

For more information on how RUME USA’s CORR strategy can enhance your real estate portfolio, please reach out to a RUME real-estate investment specialist in Chicago, call 630-381-0400 or email invest@rumeusa.com.

Headquartered in Chicago, led by Nate Reichard, RUME USA is a vertically integrated real estate investment firm targeting multifamily assets in strategic markets throughout the country. RUME’s founding principals, with six decades of collective experience, have a wide breadth of diverse real estate investment experience over their respective entrepreneurial journeys.