RECENT PROJECTS

Assumed HUD Financing

We found, secured, and negotiated for our client a successful closing on this multi-family Chico, CA property with 1031 Exchange funds. The property is financed by a HUD loan that was required to be assumed at closing. Our team navigated the complex loan assumption which took over 6 months to complete, found and procured HUD compliant management, and arranged for the entity, legal, and timing requirements for this intricate transaction. We will continue to asset manage this unit it's performing at projections.

Closed: $4.9M 223K/unit (23 - 1 Bedroom Units)

At Close (April 2022)
CAP: 4.50
NOI 220K (36% Expenses)
3.0% Cash on Cash

Projections (6 Months)
NOI 311K (30% growth)
7.3% Cash on Cash
6.7M Estimated Value (Assumed 4.5% CAP)

 

PXL_20220405_204707054

23 Units

Assumed TPA/HUD Financed

1031 Exchange Transaction

ADU Build in the Avenues

Behind an apartment building, we built a 2 bedroom 1 bath ADU house. This parcel fronted the alley which provided easy access for parking and development. When completed, the property totaled 5 units and all have private fenced yards. Development took approximately 5 months from start to finish.

Accessory Dwelling Unit (ADU) 749 Square Feet

  • Spray Foam Insulated
  • 3KW Solar System
  • Ducted Mini Split w/ Heat Pump
  • Tankless Hot Water Heater
  • Granite Counters

Cost of Improvements $200,000
Estimated Value of New House $262,150 ($350/sqft)
Net Equity Growth $62,150.

31.08% - Equity Return
11.61% - Cashflow Return

377 E 7th Ave - 03

1 New Unit

Self Managed Townhomes

We assisted our client with successfully closing on this Rancho Cordova, CA property with 1031 Exchange funds. The property was owner-managed with high expenses and units below market an average of $300/month/unit. Our team navigated the transition, took over management, and implemented changes that increased the value in 6 months by almost 2M, with more upside to be finalized.

Closed: $8M 286K/unit (28 - 3 Bedroom Units)

At Close (Nov 2021)
CAP: 4.30
NOI 586K (40% Expenses)
4.3% Cash on Cash

After 6 Months (April 2022)
NOI 688K (28% growth)
5.5% Cash on Cash
9.7M Estimated Value (Assumed 4.5% CAP)

 

10818-0

28 Units

1031 Exchange Transaction

Management Value Add

With partners, we negotiated terms and successfully closed on this Redding, CA property with market financing. The property was owner-managed with high expenses and units below market an average of $400/month/unit. Our team navigated a difficult escrow, took over management, and implemented changes that increased the value in 6 months by over 1M, with more upside to be finalized. We also completed a rebrand, changing the name and signage.

Closed: $2.4M 133K/unit (18 - 2 Bedroom Units)

At Close (Oct 2021)
CAP: 4.20
NOI 101K (43% Expenses)
No Cash on Cash

After 6 Months (April 2022)
NOI 152K (51% growth)
7.2% Cash on Cash
3.4M Estimated Value (Assumed 4.5% CAP)

 

10766-0

18 Units

Portfolio Purchase

Our client owned 2 units next to an additional 6 identical units. We arranged for the sale of the adjacent properties to our client. We completed the underwriting and negotiated terms for the cash purchase of the additional units. This involved managing a 3 part domino 1031 exchange. It went as planned and our client was able to sell his underperforming asset in Arcata CA and trade into this building. Our team took over management from a self managed seller and was able to make near immediate changes in the operations of this property as manager.

Closed: $1.325M (Off Market) | 220K/unit
Approx. 90 day close
CAP: 5.38 (as management)
NOI 71K (as managed)
5.4% Cash on Cash Return (as managed)

 

1157 E 9th St - 01

6 Units (3 Parcels)

1031 Exchange Transaction

Four Seasons Apartments

We put together a buyer group, completed the underwriting and negotiated favorable financing and terms on this 20 unit apartment building in Chico CA. Our team took over management from a self managed seller requiring much compliance and standardization. Our buyer group is pleased with the speed of acquisition on this quality asset.

Closed: $4.7M (List: $4.825M) | 235K/unit
Approx. 60 day close
CAP: 5.27 (as underwritten)
CAP: 5.84 (as target with management)
NOI 248K (as underwritten)
8.8% Cash on Cash Return (as underwritten)

 

1 (1)

20 Units

Secured Private Financing

Floral East Apartment Homes

We put together a partnership, financing and will be breaking ground in late 2020 for this 23 unit apartment building in Chico. Coming Soon!

004-5941

We purchased this 4 unit apartment building, and got to work. It was dilapidated and outdated. One unit was completely remodeled, including adding a washer/dryer, new kitchen, new floors, new bathroom and more. Other updates include new siding, doors, windows and more!

We took this 2 bedroom home, without working HVAC, one working bathroom and nearly all original amenities to the studs and foundation to rehab it.

We kept the roof, but outside of that and parts of the slab, everything was new, including all walls, windows, etc.

Our team was hired to manage this brand new 32 unit development, stabilize financials and manage the sale and brokerage.

We stabilized this student property, seasoned the financials and brokered and closed this asset for a new buyer.

32 Units

1031 Exchange Transaction

We had an electrical fire that burned a 1bed 1bath house. After water damage and the fire, it was demoed to the studs and put back together.

This was a major rehab that required a new foundation, new kitchen, bathroom, HVAC and more. It is brand new!

Construction Value Add

Our team was hired to manage this brand new 26 unit development, stabilize financials and manage the sale and brokerage.

We stabilized this property, seasoned the financials and brokered and closed this asset for a new buyer. Since the sale, we have increased cashflow significantly and exceeded proforma and advertised returns.

26 Units

1031 Exchange Transaction

Chestnut Add Unit

We took a red tagged attic space from this 1910 home, and converted it into a brand new 4 bedroom 2 bath unit.

This was a major rehab that required a new foundation, facade, ADA compliance, new bedrooms, bathrooms, HVAC and more. This project took nearly a year to complete including planning and approval for permitting.

Construction Value Add

7th Street New Build

Ground up build of a duplex, 4 bedroom units with 4 private baths, attached to each room. Built with low maintenance durability in mind, waterproof floors, no carpet, instant hot water heaters, mini split heat/cool controller per room. This unit has a large balcony and covered porch looking over 7th street. Parking is to the left with 3+ spots and pull through to a rear driveway.

Construction Value Add

We purchased a run down and dumpy 4bed 2bath unit for 228K with undermarket rents. We remodeled and increased the rent by over 6K/year, and by doing so increased the value by at minimum 50K.

Construction Value Add

At the time of close, approx 5 pit bulls and other squatters were living in this bank owned triplex.

Broken windows and repairs prevented conventional financing, so as the buyer we repaired windows and flooring prior to close.

Construction Value Add

We purchased a duplex as is from a seller, with a problem unit. This was a 2/2 and 3/2 duplex.

At the time of close, the 3 bedroom 2 bath unit was full of junk, dirt and grime. The tenant was behind on rent and has lived there for nearly 20 years without repairs.