Strategy:Reposition an Underperforming Property
Investment Date:November 2001
Property Type:Multifamily Residential
Size:212 Units
Total Cost:$35.1 MM
Disposition Date:October 2007
Project IRR:24.5%
Background:
After acquiring this 212 unit garden community located in Long Beach, CA, Security Properties embarked on a value add campaign through capital expenditures. This property carried a low rate floater bond that mandated a mix of 80% market rate / 20% affordable housing which added complexity and potential upside at expiration to the deal. The firm managed this accordingly, and the end result was a successful asset repositioning and subsequent disposition that led to substantial gains for the firm and their investors.
Highlights: