MINNEAPOLIS, MN — Vitalis Smart Communities advised the ownership of Rafter Apartments, a 283-unit highrise multifamily property in Minneapolis, Minnesota, successfully restructuring an underperforming retail telecom arrangement into a bulk internet agreement with the property’s incumbent provider. The result was a measurable increase in net operating income and nearly $2 million in created asset value.

The property had been operating under a NEMA model in which fewer than a third of residents were subscribed to internet service at retail rates, with ownership capturing only a modest revenue share in return. The arrangement left the majority of the property’s telecom value unrealized and gave ownership little control over pricing, escalation, or contract terms.

Vitalis identified the transition to bulk as a high-priority opportunity and engaged the incumbent provider directly to negotiate a restructured agreement on terms built around ownership’s needs rather than the provider’s defaults. The new bulk agreement secured a lower per-unit rate and reduced annual escalation compared to market, while also incorporating protective contract language addressing potential changes in government regulations affecting bulk internet arrangements and a preferred service commencement date aligned with the ownership’s operational timeline.

The restructured agreement produced an annualized NOI improvement that, capitalized at prevailing market rates, generated approximately 19x the value of the annual savings secured.

“Most ownership groups don’t realize how much value is sitting dormant in a retail telecom arrangement,” said Meaghan Peek, Vice President at Vitalis Smart Communities. “At Rafter, we didn’t just flip the model. We rebuilt the contract from the ground up to protect ownership against regulatory changes, lock in favorable economics, and set a start date that worked for them. That combination of structural savings and contract intelligence is what drives nearly $2 million in value creation on a deal most people would have treated as a routine renewal.”

Vitalis Smart Communities 

Vitalis Smart Communities is the nation’s leading telecom advisory firm specializing in connectivity solutions for multifamily communities, HOAs, COAs, and developers. The firm designs and negotiates bulk internet, managed Wi-Fi, and smart building infrastructure that increases property value and enhances resident experience.

Media Contact: Abigail Kind 802.881.9278