|
3/11/15
|
Pendo Investments has acquired three SoCal multifamily properties totaling 222 units. The properties were purchased in separate deals with a combined cost of $46.5 mil ($209.5k/unit).
The acquisitions include a 111-unit property in Garden Grove, a 95-unit property in Downey and a 16-unit asset in Bellflower. Both the Garden Grove and Downey properties were built in the 1970’s and have been well maintained, however, no substantial cosmetic upgrades have been completed to the buildings in many years.
The Bellflower property was built in the mid 2000’s as stand-alone townhomes with the original intention to sell as individual condominiums. However, the property was operated as a rental property after the economic downturn of 2008. While Pendo underwrote the purchase as a rental income investment, it may elect to sell the units as individual townhomes at the end of the hold period.
All three assets were acquired as value-add opportunities. The properties were purchased from three different private sellers and represent the 18th, 19th, and 20th properties Pendo has acquired over the past 36 months, increasing its current portfolio value to over $150 mil.
Pendo will spend $12k/unit in capital renovations across the portfolio to upgrade the property exteriors, common area amenities and unit interiors. Exterior improvements will include landscaping, façade upgrades, signage, leasing office improvements, paint, fitness center and common area renovations. Planned unit interior upgrades include granite countertops, kitchen cabinets, appliances, flooring, paint, vanities, fixtures and other improvements. As upgrades are completed, Pendo plans to increase the existing under-market rents to current “post-renovated” market levels.
Pendo presently owns nine other properties in the immediate surrounding submarkets and has successfully executed similar strategies on each of these assets. The company will utilize its local market knowledge, value-add expertise and tenured operations experience to maximize property cash flow and value.
|
|
Return to the Archive page
|
|
|
|
|