theNEST - USC Student Housig Opportunity

Investment Drivers

  • Excellent unit mix with large unit floor-plans ideal for re-positioning to student housing and reconfiguration of units for addition of income-producing bedrooms.
  • Neglected asset with significant upside potential. At acquisition, in-place rents were well below those at competing properties. Additional upside created from renewal and reconfiguration of the property was recognized post-renovation.
  • Strong geographic location less than 1,000 feet from the University of Southern California campus. Five blocks from the Metro Exposition Line. Within one-half mile of Exposition Park and the Los Angeles Memorial Colisuem, home of the USC Trojans and LA Rams, the proposed Banc of California Stadium, a new 22,000 seat soccer venue, and the $1.5 billion George Lucas Museum. Less than 2 miles from Downtown Los Angeles and Koreatown employment centers. 

results

  • 232% increase in gross income.
  • 156% increase in property value.
  • Construction completed over a 75-day cycle, and the property was fully rented within 90 days from start of work.
  • Down-to-the-studs renovation and reconfiguration of the units that allowed for replacement of all major building components, including all plumbing and electrical systems. Property further improved with addition of modern HVAC systems and individual laundry in each unit, new Shaker-style kitchen and bathroom cabinetry and fixtures, stainless-steel appliance package, and the addition of six new bedrooms and eight new bathrooms.
  • Increased bedroom count by 50% through unit reconfiguration.
  • Improved rents from sub-$600 per bed, per month average to over $1,000 per bed, per month.
  • Refinanced in mid-2017 - tax-free return of 80% of initial investment capital, and total return to date* of 94% of invested capital with no dilution of membership interests.
Purchase Date Purchase Price Total Investment Current Value Current Equity Total Return
August 2015 $1,294,360 $935,000 $3,200,000 $1,440,000 159%

Results as of March 2018 - Past performance and statements regarding earnings are no guarantee of future results.