Villa23 - USC Student Housing


Purchase Date Purchase Price Total Investment Total Return
June 2017 $1,080,000 $810,000 83%

Results as of January 1, 2019 - Past performance and statements regarding earnings are no guarantee of future results.

 

INVESTMENT DRIVERS

  • Attractive unit mix with large unit floor-plans ideal for reconfiguration and addition of income-producing bedrooms.

  • Absentee owned and mismanaged asset with significant deferred maintenance that presented significant upside potential.

  • In-place rents at acquisition were approximately 65% below those at competing student housing assets.

  • Rapidly improving location within the USC university campus security zone, and less than one block from popular restaurants, cafes, and services. One mile north of the USC campus and nearby Exposition Park, the Los Angeles Memorial Coliseum, Banc of California Stadium, the $1.5 billion George Lucas Museum, and less than 2 miles from Downtown Los Angeles and Koreatown employment centers.

RESULTS

  • Obtained approved permit-ready architectural and engineering plans for remodeling and reconfiguration of the property, allowing for 6 new bedrooms and four new bathrooms within the building footprint. Permitting process included satisfaction of Historical Preservation guidelines and approved plans for soft-story retrofitting.

  • Following completion of the remodel in mid-July 2018, the property was successfully leased up and fully stabilized by August 1, 2018.

  • Rents increased from an average of $919 at purchase to $2,530 average.

  • The property was sold in December 2018 for $2,127,500 realizing a total return on equity of  83%.