Thought I’d share numbers for a deal we just stabilized. Not going to share the address, because I don’t want to tip anyone off re neighborhoods, etc. Anyway, here goes: Acquired in Spring 2015 Stabilized approx. 13 months later All in for ~$2.37MM Stabilized rent roll of $262k Implied GRM of 9x (!) Forecast NOI of $190k
Just finishing a 4plex in a really cool, up-and-coming neighborhood that we renovated on behalf of an outside investor. Was reviewing the original pro forma and revising in light of what I believe the rents will be… and got an annoying surprise. Based on the original pro forma, this was not a deal that we
Just had a minor epiphany while walking over to the office from breakfast that I thought I’d share with you. It’s kind of embarrassing, in a “slap-myself-in-the-head-for-not-recognizing-this-earlier” kind of way, but I’m all about honesty on this blog, so here goes… Regular readers know I spend a lot of time thinking about the components of value.
Spent some time this morning looking at rents in Silver Lake. When we started in this business back in 2008, a really nice 1 bed in Silver Lake was around $1500. Today, a similar apartment goes for $2200-2300. That’s an increase of ~50% in eight years… or around 5-5.5% / year (inclusive of compounding). But that’s
You may remember 363 S Leslie, a 4plex we recently completed in Highland Park. Here’s a pic to jog your memory: Am happy to report that leasing is done. Better yet: Our rents came in materially higher than we originally pro forma’d. So, instead of the 6.3% unlevered yield we expected out of the property, I