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5/08/15
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Interstate Equities Corporation (IEC) has just acquired Citra Apartments, a 34-unit residential property in Burbank, for $6.7 mil ($197k/unit) in an off-market transaction. Built in 1958, the property sits on 0.4 acres at 700 S. 6th St, within walking distance of the city’s downtown.
IEC will make a series of improvements to the property, which has never been renovated over all this time, which will enable IEC to grow rental rates by approximately $500 per unit in just three to six months. The firm plans to fill in the community’s out-of-date swimming pool, which is currently a safety hazard for approximately 12 units that open directly in front of its edge. In its place, IEC will create a modern lounge where residents can interact and engage. IEC also plans extensive interior and exterior improvements, including new flooring, paint and appliances, as well as a contemporary rooftop deck for residents to enjoy.
“Even with the substantial rent increase we will achieve in this asset, renters will still be paying less than $1,600 per month for a one-bedroom apartment in walking distance to downtown Burbank,” notes Marshall Boyd, President of IEC. “That level of pricing is nearly impossible to find in this area.”
The property was sold by a Los Angeles-based second-generation family owner. Bryan Schellinger and Tyler Martin of ARA Newmark represented IEC in the acquisition.
Founded in 1981, IEC is an institutional fund manager that invests in and transforms California apartment communities on behalf of endowments, family offices and pension funds. The firm has taken roughly 85 properties full-cycle for its investors, and has completed more than $1.5 bil in real estate transactions since 2006.
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