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 However, the appearance remained outdated, failing to attract the market rents that the undersupplied market dictated.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

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)

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)

Value‐Add

  • Capital Expense: $931,000
  • Cap Ex / Unit: $12,091
  • Total Cost: $6,321,000
  • Total Cost / Unit: $79,494

Equity Multiple

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