Summary
Opportunity to continue implementing existing rehab plan and improve amenities to achieve $250-$300 increase in rent.
Severely mismanaged asset with underutilized amenities for the submarket (fitness center, indoor full basketball court, pool, daycare).
Strong median income ($67K) for the area with 12.3% average rent growth the last year and 25.9% 3 year rent growth.
Minutes away from 4M+ SF of logistics and retail employment, including a recently opened Amazon distribution warehouse.
Projections based on renovating 151 units for an average rent of $1,248 which is still a significant discount to the nearby comps.
Additional room for rent growth after the common areas are enhanced and the amenities offered are increased (fitness center, indoor full basketball court, pool, clubhouse).
Opportunity to increase other income including laundry income, internet/cable income, and daycare operations.
High growth market with future projects that will increase the appeal of the area in the next few years.
WHY WE LIKE THIS DEAL
Offering snapshot: | Our Ideal Criteria:
We never recommend a deal that we aren’t investing in ourselves. We invest alongside our partners. As stewards of your capital, we’re primarily looking at the following criteria when vetting properties to see if they would be a good fit for our investors;
Proven Opportunity to Push Rents Opportunity to renovate 151 units which are approximately $250- $300 below achieved renovated rental rates at the property. Reposition as “Value-Provider” and Maximize Amenity Package The current owner is under utilizing the existing amenities. Additional rent increases can be achieved by activating and enhancing them, including: a full court indoor basketball gym, fitness center, pool, after school/day care center, additional storage and/or yoga/pilates studio. By repositioning the asset, we intend to shift the tenant profile to be more competitive with other nearby, higher rent multifamily assets. Established and Improving Submarket Nearby apartments are achieving up to 30% more than our renovated rents. Additionally, there are single family homes that have recently sold for $350K+ immediately adjacent to the property. |
KEY DEAL POINTS
Investment profile VALUE ADD + HYBRID | Sponsor experience HYBRID | Property type Multi-Family |
|---|---|---|
IRR 19.0%* | Equity Multiple 2.25x* | Cash Yield 8.0%* |
Investment Period 5 years | Cost Segregation Bonus Depreciation | Offers Due coming soon |
* Asterisk denotes a targeted metric (click to learn more). All targeted returns are stated in net-to-investor terms (i.e. net of fees and promote), provided by the sponsor, and subject to change.
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