• PROJECTED RETURNS

    6% preferred return with a stabilized IRR target of 34.86% and 9.6% cash on cash.

  • 42 UNITS

    Large amount of units in a concentrated and highly desirable area.

  • VALUE ADD

    1) Current expenses are 50% of rents
    2) Update landscaping for reduced water expense
    3) Analyze current leases and notify all tenants paying below market rents that we will offer them cash for keys, typically $10k to $12k depending on the unit.
    4) Rehab 10-14 units per year for the first 3 years, spending on average $8,000 per unit, totaling $112,000 per year or $336,000 bringing up rents.
    5) Any in place leases will on average be increased 4% yoy
    6) expect each unit to be vacant for 1 month during rehab
    7) By year 3 expenses will be about 30% of gross income
    8) Refinance out of bridge loan by year 3 moving to a more permanent loan
    9) Sell in year 5, using a cap rate of 4.25%, with estimated sale price of $24M and profits expected to be $7.3M

  • AMENITIES

    Unbeatable location with proximity to shopping, dining, and schools. Onsite pool, multiple laundry rooms and Well maintained playground.

KEY DEAL POINTS

  • 34.4%

    Targeted Investor IRR

  • 6%

    Preferred Return

  • 70/30

    Equity Split

  • 1%

    Acquisition Fee

430 S Berendo