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Portfolio
The Gatsby on First
4043 First Ave, San Diego, CA 92103
Acquisition: November 2023
15 Units Built: 1970
(9) 2 bed/2 bath, (6) 1 bed/1 bath
Frontier Apartments
2429-45 J St, San Diego, CA 92102
Acquisition: May 2023
21 Units Built: 1988
(13) 4 bed/2 bath, (8) 3 bed/2 bath
Vista de Helix Apartments
8707 Troy St, Spring Valley, CA 91977
Acquisition: April 2023
28 Units Built: 1978
(28) 2 bed/1 bath
CASE STUDY
This opportunity presented both operational upside and a significant value-add component. The seller, an out-of-town owner, struggled with self-management. Having another property just two blocks away, we had a deep understanding of the submarket and its potential upside. Our familiarity with the area, combined with our strong relationship with Freddie Mac—having two other active loans—made us an attractive buyer. This enabled us to assume the seller’s loan at a favorable 2.98% interest rate.
Since acquisition, we have successfully stabilized the property, completed value-add renovations, and are now preparing to refinance the original loan in December. We expect to return capital to our investors as a result of our business plan execution over the past two years, having increased the property’s net operating income (NOI) by more than 80%.
Van Dyke Apartments
4344 Van Dyke Ave, San Diego, CA 92105
Acquisition: March 2022
8 Units Built: 1968
(5) 1 bed/1 bath, (3) 2 bed/1 bath
30th Street Apartments
2902 30th St, San Diego, CA 92104
Acquisition: March 2022
6 Units Built: 1988
(6) 2 bed/1 bath
Chamoune Apartments
3845 Chamoune Ave, San Diego, CA 92105
Acquisition: March 2022
22 Units Built: 1971
(20) 1 bed/1 bath, (1) 2 bed/2 bath, (1) 3 bed/1 bath
Encanto Apartments
1050 S J Street, Oxnard, CA 93030
Acquisition: July 2021
33 Units Built: 1965
(14) 1 bed/1 bath, (12) 2 bed/1 bath, (7) 2 bed/1.5 bath
CASE STUDY
This opportunistic acquisition was sourced through a hard money lender. The property owner, residing out of state, had a family member mismanaging the asset to the point that Chase refused to refinance the existing loan due to the poor operating revenues and significant deferred maintenance throughout the property. In order to secure the deal, we stepped in as the lender so that the seller would avoid defaulting on their existing loan. As a condition to the loan, we took over property management during the escrow period. This alleviated the pressure on the seller and allowed our management team to get a head start on vacating the property.
Our scope of work included replacement of the main water line, sewer line, and interior plumbing. The interior units were completely gutted and renovated, and we also undertook major exterior upgrades, including replacing the roof, windows, sliding doors, and enhancing both the landscape and hardscape. This comprehensive repositioning transformed the property into a more attractive and functional asset.
Despite a rise in interest rates prior to our refinance (5.64% actual versus a proforma rate of 3.75%), we successfully returned 62% of the invested capital just 14 months after acquisition. Additionally, we are currently distributing cash flow at an annualized rate of 12.14%.
Sandy Bev Village
8619-86 Sandy Bev Lane, Lemon Grove, CA 91945
Acquisition: November 2020
22 Units Built: 1966-1969 and 1987
(2) Single-family, (18) 2 bed/1 bath, (2) 3 bed/2 bath
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Sales
Park Place Apartments
4109 Park Place, San Diego, CA 92216
Sale: January 2023
7 Units Built: 1969
(4) 1 bed/1 bath, (3) 2 bed/1 bath
CASE STUDY
This property underwent a comprehensive repositioning. In addition to the typical scope for full interior renovations, we added washer/dryers and air conditioning to enhance tenant appeal. We successfully executed our business plan, sold the property, and completed a 1031 exchange into a larger asset within 22 months, yielding investors a 27.5% internal rate of return (IRR). The sale price of $506,000 per door remains the highest in the area for properties of this type and vintage. The 1031 exchange provided investors with the opportunity to recapitalize their initial investment tax-free, while also increasing their preferred return without requiring additional capital.