La Fayette Marquis, Los Angeles

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Opportunity

  • Long term owner with very low basis needing to sell for estate reasons and needed quick liquidity.

  • Undermanaged rent control property and previous management did not focus on strategies to decontrol units and bring them to market.

  • Gentrifying Koreatown location with tremendous rent growth.

  • Ability to tie branding into two other projects we owned on that block to gain larger presence for leasing and marketing and gain economies of scale in operations.

Investment Strategy Highlights

  • Allocate capital to tenant relocation assistance in order to bring as much of the rent roll to market as possible. Incentivize management team to pursue tenants for relocation.

  • Renovate units as they were brought to market to maximize rent potential. In depth analysis the market proved an increased return on cost of higher end finishes such as faux wooden floors, quartz countertops and stainless steel appliances.

  • Upgrade common areas once 30% of the units were vacated. Strategically timed exterior renovations to follow approximately 30% of the building turning over so we were not improving the property while trying to get tenants to relocate.

  • Upgraded building infrastructure through re-pipe and low flow water program to reduce annual water usage in excess of 25%.

Jameson Elder