Twelve77 - USC Student Housing Opportunity


Purchase Date Purchase Price Total Investment Total Return
January 2017 $1,080,000 $700,000 84%

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

INVESTMENT DRIVERS

  • 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.

RESULTS

  • 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%.

 
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