Results for ‘Income Property Benchmarks’ category

Silver Lake rents and operating margins

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

363 S Leslie is fully leased

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

Why developers prefer to build luxury apartments

Here’s a question that’s been popping up all over the place: Why do developers only build apartments for the rich? The answer, as with most things in our business, is in the math. Imagine you can buy enough land to build 10 units for $1MM, or $100,000 per unit. Let’s say you have two options:

Whoa! Got my hands on someone else’s PPM…

Just got my hands on the marketing materials for a deal being syndicated by one of my (larger, more established) competitors. Was obviously thrilled to take a look at the forecast economics and how they are structuring deals. The structure is fine. They’re actually not really being compensated sufficiently for the work they’re doing on

How leasing impacts acquisitions

“Hey Jacob. What did we get for the last 2/1 we rented at X?” I think I ask that question of Jacob, who runs our management business, 4-5 times per week. Why? Because we’re constantly recycling the market information we glean from leasing back into our acquisitions underwriting. The go/no go decision on each deal is

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