Property Details

Purchase Price: $10,000,000
Number of Units: 44
Price Per Unit: $227,272
RSF: 31,454
Year Built: 1970
Current Cap Rate: 4.78%
Market Cap Rate: 5.89%
Current GRM: 13.60
Market GRM: 11.89
 

Investment Details

This project is a 44-unit apartment building located in Hawthorne. The scope of this project will be to purchase the property for $10,000,000. We then estimate $10,000/unit in rehabilitation costs or approximately $500,000. The unit mix is highly desirable, with eighteen 2 bedroom and 2 baths at an average $1,514 per month, twenty-four 1 bedroom and 1 baths at an average $1,308 per month, and two studio units at an average $1,098 per month.

We believe that the rehab will be completed in the first year, allowing us to refinance within that year to pull cash out. We will then hold the property until year 6, when we expect the new capitalized value to be $11,883,775.  Apartment buildings over 30 units very rarely come up for sale in this market, this is a rare opportunity to own and improve a quality high-volume occupancy property in Hawthorne.