North Downey Apartments
About this Property
This property will deliver exceptional investor returns on our current program at a conservative exit cap of 4.75, while brokers are quoting a low 4.25 exit. We are very familiar with the location owning multiple well performing assets in Downey. We have performed our due diligence and feel confident in the asset. This asset is in the City of Downey in an area that is seeing significant capital improvement including being surrounded by the 117 unit Centerpointe townhome project (projected to complete fall 2016) from KB Homes on the former Gallatin medical facility. Our annualized investment returns are calculating above 16% which includes 8% per annum preferred return for investors during the asset hold period which we are planning to be 12-18 months.
- Great workforce location in an area receiving a lot of citywide capital improvements
- Excellent purchase price where stabilized properties are trading more than $50k above our purchase price.
- More than $400 rental upside per unit.
- The Property will soon be surrounded by brand-new town homes as a KB Homes project reaches completion in Fall 2016. The new development will increase property value and will help support improving rent rates.