1850 11th Street, Santa Monica

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Opportunity

  • 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  • Outdated property in one of the strongest rental markets in the country.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.

Jameson ElderARE