Sitting on 1.56 acres the property is centrally located in the entertainment hub of California with access to major highways and convenient shopping. The property was modestly renovated with an exterior paint job and new landscaping several years prior to the acquisition. However, the appearance remained outdated, failing to attract the market rents that the undersupplied market dictated. The property was upgraded with new pool and fitness center. Additionally, the unit interiors were renovated with new cabinet faces, countertop and modern finishes.
- City
- Burbank, California
- Units
- 77
- Renovation Budget
- $914k ($11,870/unit)
- Debt Partner
- GE Capital
- Equity Partner
- Individual Private Investors
Additional Details
Highlights
- Increased rents by 155% over 12 years.
- Minutes from the Burbank Studios & Media Center Mall.
- Infill property just off Interstate 5 with access to thousands of jobs.
- Targeted because it was the lowest renting property in Burbank via an unsolicited offer.
Summary
- Year Built
- 1962
- Acres
- 1.57
- Avg Unit Size
- 631 sf
- Amenities
- Fitness Center, 2 Pools, Ceiling Fans, Extra Storage
IRR (Leveraged) 54.4%
Acquisition
- Price: $5,190,000
- Price/Unit: $67,403
- NOI: $370,700
- Cap Rate: 6.7%
- Purchase Date: Dec. 2001
- Avg. Rents at Close: $605 ‐ $0.96/ft
IRR (Unleveraged) 7.5%
Value‐Add
- Capital Expense: $931,000
- Cap Ex / Unit: $12,091
- Total Cost: $6,321,000
- Total Cost / Unit: $79,494
Equity Multiple 2.8x
Exit
- Exit Value: $12,750,000
- Value / Unit: $165,584
- 2013 NOI: $756,000
- Yield on Owner basis: 12%
- Current Avg. Rents: $1,325 ‐ $2.10/ft