Regular readers may remember 1947 Clinton St: It’s the gigantic fourplex at the corner of Alvarado and Clinton acquired by Adaptive Realty Fund 1 roughly a year ago.
When we bought the property, it was in rough shape due to roughly 30 years of neglect by the previous owner. Pretty much everything that can wear out on a building had worn out.
We spent roughly 10 months fixing every single problem and re-imagining the property with stylish details and every modern convenience.
Our efforts paid off when we signed leases. The rent roll is now roughly $138k / year, up from something like $28k(!) when we bought it.
As you probably know from reading this blog, my general inclination is to hold real estate, not sell. That is particularly the case with this property, where our return on equity invested is likely to be around 10% / year, without using leverage.
That said, we recently received an unsolicited offer for the property. We therefore owe it to our investors to determine what the market value is. After all, it is my experience that, at the right price, anyone is a seller.
Here’s the MLS listing, in case you’re interested.