Venice Apartments, Los Angeles
1965 vintage 15-unit rent controlled property located in Mar Vista, Los Angeles, CA. Considerable additional value in the fact that the revenue was 75% or more under market at the time of acquisition.
Acquired in February of 2018, business plan is expected to take 3 years with an anticipated refinance at stabilization.
Business plan included an aggressive tenant relocation and buyout strategy, major renovations to the vacant units, and re-tenanting at market rental rates.
Investment Strategy Highlights
Rent control property acquired in February of 2018, but June 1 of 2018 Arrowroot Real Estate had successfully relocated 100% of tenants previously occupying the property.
Immediately renovated all units which included removing multiple walls in each unit to develop a more open floor plan.
Successfully leased up and achieved rents that exceeded our Year 4 forecasted expectations. Converted a room that was previously being used as storage space into a studio unit. Currently in the process of refinancing approximately half of the initial equity out and holding for cash flow for the next 4-5 years.