Twelve77 - USC Student Housing Opportunity
|Purchase Date||Purchase Price||Total Investment||Total Return|
Results as of March 31, 2019 - Past performance and statements regarding earnings are no guarantee of future results.
In June 2017, ICG acquired a six-unit apartment building located three-quarters of a mile from the University of Southern California (USC) campus.
It was 100% occupied at purchase with in-place rents that averaged just $919 per month.
Proximity to the USC campus and inclusion in the university’s private patrol zone made it a highly desirable location for USC students to live
Favorable acquisition terms: $1,080,000 purchase price / $180,000 per unit / $247 per square foot.
Using our other USC properties as a benchmark, we knew if we repositioned the building as student housing that post-renovation rents would at least double.
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 84%.