1850 11th Street, Santa Monica
Original owner passed away and left the property to children through family trust. Children were not real estate savvy and wanted to liquidate quickly.
Long term tenants who were approximately 350% below market due to rent control.
Outdated property in one of the strongest rental markets in the country. The previous owner had not put any capital into upgrading the units in over 30 years.
Marketed by a single family residential broker and underpriced without enough consideration to the upside potential in revenue.
Investment Strategy Highlights
AllocatAggressive tenant relocation program with offerings as high as $90,000 in relocation fees.
Condo spec renovation on the units to maximize the rent potential in the area. High end new cabinetry, walk-in showers, washer and dryer installed, high-end quartz waterfall style countertops, custom closets and high end finishes (relative to typical apartment renovations).
100% of the units were brought to market. As a result, we decided to exit in an effort to maximize returns through a 1031 exchange and eliminate risk to future loss in value from potential cap rate expansion.