Property Details
Stabilized Occupancy  Below Market Rents  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

The Riviera and Rainbow Gardens Apartments

Azusa, CA

Multi-Family Property
Barker Pacific Group Los Angeles, CA
Barker Pacific Group
  • IRR 18%
  • Equity Multiple 1.63x
  • Hold Period 3Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash N/R
  • Stabilized Cash on Cash 8% in Y3
  • First Distribution Apr 2021
  • Distribution Frequency Quarterly
  • Asset Profile Value Add
  • Loan-to-Value 80%
  • Current Occupancy 100%

About this Property

Why This Property?

Barker Pacific Group:

  • Strong Historical Occupancy: Historical occupancy for both the properties and the sub-market is above 97%, illustrating the strong supply/demand fundamentals in the area.
  • Limited Supply: No comparable supply deliveries are expected during the term of ownership.
  • Below Market Rents: In-place rents are 20% below the market.
  • Well Maintained Assets: The properties are well maintained allowing Barker Pacific Group to target specific cosmetic improvements which will yield the greatest returns.
  • Prominent Location and Visibility: Situated near downtown Azusa on Azusa Ave, a major local thoroughfare, with easy access to the 210 Freeway and Metro Gold Line.
  • Off-Market: The asset is being purchased prior to being shown to the broader market from ownership, who has owned the assets for the past 20 years.



Why Do You Like This Strategy?

Barker Pacific Group: The strategy is focused on acquiring distressed or underperforming assets in sub-markets that exhibit severe supply constraints and high-barriers to entry. By targeting Class B and C multi-family apartments in Southern California with low in-place rents and high historical occupancy, Barker Pacific Group is well positioned to take advantage of tightening market conditions and well protected against new construction and competition. Due to continued affordability challenges in the LA Basin, there will always be demand for this product.



How Are You Mitigating Risks?

Barker Pacific Group:

  • Buying Below Replacement Cost: Due to the shortage of available land and the rising costs of construction in Greater Los Angeles, it is nearly impossible to construct comparable properties, which limits new competition in an already supply constrained market. The limited supply combined with the demand for housing in the area will allow BPG to push rents while keeping vacancy tight.
  • Conservative Rental Rates: The planned renovations are designed to achieve the pro forma returns by pushing rents to be in-line with competitive properties rather than targeting a rent premium to market.
  • Discount to Neighboring Markets: Azusa is a nice community along the foothills of the San Gabriel Valley bordered by other middle-class communities which have a significant rent premium. Given the projected basis, the project is insulated against competing markets and can greatly benefit from the existing rent delta.

About this Property

Why This Property?

Barker Pacific Group:

  • Strong Historical Occupancy: Historical occupancy for both the properties and the sub-market is above 97%, illustrating the strong supply/demand fundamentals in the area.
  • Limited Supply: No comparable supply deliveries are expected during the term of ownership.
  • Below Market Rents: In-place rents are 20% below the market.
  • Well Maintained Assets: The properties are well maintained allowing Barker Pacific Group to target specific cosmetic improvements which will yield the greatest returns.
  • Prominent Location and Visibility: Situated near downtown Azusa on Azusa Ave, a major local thoroughfare, with easy access to the 210 Freeway and Metro Gold Line.
  • Off-Market: The asset is being purchased prior to being shown to the broader market from ownership, who has owned the assets for the past 20 years.



Why Do You Like This Strategy?

Barker Pacific Group: The strategy is focused on acquiring distressed or underperforming assets in sub-markets that exhibit severe supply constraints and high-barriers to entry. By targeting Class B and C multi-family apartments in Southern California with low in-place rents and high historical occupancy, Barker Pacific Group is well positioned to take advantage of tightening market conditions and well protected against new construction and competition. Due to continued affordability challenges in the LA Basin, there will always be demand for this product.



How Are You Mitigating Risks?

Barker Pacific Group:

  • Buying Below Replacement Cost: Due to the shortage of available land and the rising costs of construction in Greater Los Angeles, it is nearly impossible to construct comparable properties, which limits new competition in an already supply constrained market. The limited supply combined with the demand for housing in the area will allow BPG to push rents while keeping vacancy tight.
  • Conservative Rental Rates: The planned renovations are designed to achieve the pro forma returns by pushing rents to be in-line with competitive properties rather than targeting a rent premium to market.
  • Discount to Neighboring Markets: Azusa is a nice community along the foothills of the San Gabriel Valley bordered by other middle-class communities which have a significant rent premium. Given the projected basis, the project is insulated against competing markets and can greatly benefit from the existing rent delta.

Offered By

Barker Pacific Group

Barker Pacific Group

Los Angeles, CA

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Assets Under
Management

Currently
$1B 20+ assets
Exited
$1.5B 30+ assets
Portfolio LTV
57%  
Historical
Realized Returns

Total IRR
38%  
Equity Multiple
1.87x  
Annual Cash
N/R  
Years Of
Experience

As Principals
30+ years  
In Business
31 years  
Size
30 Staff * Dedicated investor relations
* All information is reported by Barker Pacific Group as of 9/17/2019.
Assets Under
Management

Currently
$1B 20+ assets
Exited
$1.5B 30+ assets
Portfolio LTV
57%  
Historical
Returns

Total IRR
38%  
Equity Multiple
1.87x  
Annual Cash
N/R  
Years Of
Experience

As Principals
30+ years  
In Business
31 years  
Size
30 Staff * Dedicated investor relations
* All information is reported by Barker Pacific Group as of 9/17/2019.

Financials

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Offering Financial

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Location Details

Azusa, CA

  • Excellent Transit Optionality: The properties have excellent proximity to the 210 Freeway as well as the Metro Gold Line, which puts them within reasonable commutes to the major employment centers such as Pasadena, City of Industry and the Inland Empire.
  • Azusa Pacific University: Azusa is home to Azusa Pacific University, which is one of the top Christian Colleges in the nation.
  • Strong Demographics: Azusa has a population of over 51,000 with a median income of $58,000. Over the past five years, the population has grown by 6.6%, which is the fastest in the San Gabriel Valley. This trend is expected to continue through 2023, with population forecasted to grow another 4% while the median income is expected to grow 15%.

Documents

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Offering Agreement Documents

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