This 10-unit property, which consists of two mirrored 5-unit buildings, was purchased in April of 2012. It is located in the coastal city of Manhattan Beach, which contains some of the most sought after demographics in the Greater Los Angeles Basin. These very appealing 2-bedroom, 1-bath units are located within walking distance of schools, a major city park and neighborhood retail amenities. This asset has enjoyed above market occupancy rates during our holding period, while still providing continuous rental growth. The Property performed in excess of a 6% cap rate, in a market where comparable properties consistently sell for a sub 4.25% cap rate.
We purchased this property in April 2012 for $2,515,000 and disposed of it in April 2016 for $3,750,000, resulting in a total unlevered return of 49% over our holding period.
