Formerly known as Courtland, the property was upgraded and rebranded as Atrium Court. The property is located in the center of the tech hub surrounded by Google, Facebook and many Fortune 500 companies. The property encompasses 36 units on .59 acres of desirable real estate in Mountain View. Prior owner mis-managed and under maintained the building. Once acquired, the property was enhanced with a new leasing office, curb appeal, improved landscaping, and exterior paint. In-placed rent was increased by over $300 per unit. Atrium was held for two years and sold in July 2013 with XIRR of 32.3% and equity multiple at 1.7x.

City
Mountain View, California
Units
36
Renovation Budget
$220k ($6,111 / unit)
Debt Partner

Freddie Mac

Equity Partner

Wilson Investment Associates, Individual Private Investors

Additional Details

Additional Details

Highlights

  • Increased rents by over $375/unit over 18 month period.
  • Minutes from corporate HQ of Google, Facebook and LinkedIn.
  • Property in heart of Silicon Valley with access to huge tech job base.
  • Off‐market purchase via unsolicited offer.
  • Property targeted as it was self‐managed and one of the lowest renting properties in Mountain view.
  • Total profit of $2,000,000 or $55,000 per unit.

Summary

Year Built
1959
Acres
0.80
Avg Unit Size
681 sf
Amenities

Pools, Ceiling Fans, Fully Remodeled Units

IRR (Leveraged) 32.29%

Acquisition

  • Price: $6,250,000
  • Price/Unit: $173,611
  • NOI: $336,000
  • Cap Rate: 5.38%
  • Purchase Date: Jun. 2011
  • Avg. Rents at Close: $1,343 ‐ $1.97/ft

IRR (Unleveraged) 8.75%

Value‐Add

  • Capital Expense: $260,000
  • Cap Ex / Unit: $7,222
  • Total Cost: $7,017,000
  • Total Cost / Unit: $194,917

Equity Multiple 1.70

Exit

  • Exit Value: $9,000,000
  • Value / Unit: $250,000
  • 2013 NOI: $315,000
  • Cap Rate: 3.5%
  • Current Avg. Rents: $1,725 ‐ $2.53/ft
  • Sale Date: Jul. 2013