We’re recording today on the sale of 2241 Branden St., a 5 unit apartment building we renovated in Silver Lake.
Here’s a pic:
Here are the numbers:
- Units are four 2/2s and one 3/3
- Bought for $797k
- Renovated for $308k
- All in for a hair over $1.1MM
- Rent roll of $128k / year upon sale
- Sold for $1,383,000 (asking was $1.35MM)
- Net proceeds of approximately $1,327,000 (after cost of sale) plus cash taken out during ownership of $100k
- So, profit of approximately $320k on $1.1MM invested
- ROI of 29% using no leverage (not our best deal, but still pretty damn good)
Some final thoughts on Branden:
- We over-improved it. When we bought the property, the units were 2/1.5 and 3/2.5. We spent a lot of money to make those half baths into full baths and I don’t think the rents we got are any higher as a result
- I love this property. It’s non-rent control and I believe there is room for the rents to increase over time. If I had the cash, I would have bought this one from my fund. Sad to see it go, but…
- …We’re going to be managing Branden for the new owners, which we’re very excited about. All things being equal, I’d prefer to manage a building we renovated over a random one, because we know the buildings we do are in good shape.