Property

Los Angeles Value-Add Multifamily Portfolio Los Angeles, CA

Property
Type
Multi-Family
Investment Type
Property
Asset Profile
Value Add
Min. Investment
$25K
Estimated Hold
3-5Y
Target Return (IRR)
20.1%
Target Annual Cash
8.5%
Target Equity Multiple
1.71x
 

Offered By

Golden Bee Properties Experienced Sponsor

Los Angeles, CA

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Assets Under
Management

Currently
$52MM
Exited
$38MM
Portfolio LTV
75%
Historical
Realized Returns

Total IRR
30%
Equity Multiple
2x
Annual Cash
12%
Years Of
Experience

As Principals
30+ years
In Business
6 years
Size
8 Staff
* All information is reported by Golden Bee Properties as of 8/29/2017.
 

About this Property

This portfolio consists of 51 units within four buildings, all within the South Los Angeles submarket. Golden Bee Properties has been active in this submarket for six years and currently owns and manages 15 assets within a three mile radius of these properties.

The plan for this portfolio is three pronged:

(1) the set of rent-controlled assets (Manchester and Victoria) will be held for five years with a refinance and cash out occurring two to three years into the hold period, these building will have a natural turn over and attrition thereby increasing rents steadily;

(2) the asset on Broadway, will have an immediate increase in rents with 10 percent increase notices provided to the tenants, those tenants who decide not to pay the increased rent and leave, their units will be turned over and taken to market, the asset will be held for approximately three years; and

(3) the asset on 91st St will be gutted and rehabbed in full within nine months, re-rented at market rents and brought back to the market to sell within one year or so.

Having 51 units within four separate assets allows the portfolio to be nimble, taking advantage of dispositions and refinances at various moments in time. As such, the portfolio is projected to return all investment capital to the investors by the end of Year 3, while still providing cash flow into Years 4 and 5. The projected timeline of events will occur as follows:

Year 1 - Purchase and repositioning of all four assets

Year 2 - Sale of 91st St

Year 3 - Sale of Broadway; Refinance of Manchester and Victoria; Return of all investor capital

Year 4 - Continued repositioning of Manchester and Victoria

Year 5 - Sale of Manchester and Victoria

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Key Points

  • Value-add investment opportunity
  • Core Los Angeles market
  • 8.0% preferred return
  • Four separate assets allowing for flexible disposition strategy
  • Projected 20.1% IRR
  • Strong and experienced local sponsor
  • Investor's capital is projected to be returned in full by year 3
 

Financials

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Location Details

Los Angeles, CA

This portfolio consists of 51 units, within four buildings, all within the South Los Angeles/Hawthorne submarket. Golden Bee Properties has been active in this submarket for six years and currently owns and manages 15 assets within a three mile radius of these properties.

We have seen substantial public and private improvements to these submarkets over the last decade including the build-out of a new subway line along Crenshaw Boulevard set to be completed in 2019, which will connect Downtown LA to LAX. We have also seen major private investments with the introduction of the Los Angeles Rams / Los Angeles Chargers new football stadium and surrounding lifestyle retail center, all set to open in 2019 as well.

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Documents

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Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The funding deadline is October 2nd, 2017.

The first projected distribution is scheduled for January 2018.

Distributions are scheduled to go out on a quarterly basis.

Yes, non-US residents are welcome to apply.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

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Have a Question?

Send Golden Bee Properties and/or RealCrowd a message. If you have a question about this offering ask Golden Bee Properties. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

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