We completed the off-market acquisition of two “pride of ownership” buildings in Gardena, located within ½ block of each other, in November 2019. They consist of a 16unit and a 10unit building, with each unit having either a private patio or balcony and a garage or covered off-street parking spot. The properties are located within 1-2 blocks of Pacific Square (a dominant retail center in Gardena), the Gardena Civic Center, a community pool, a large church and a cute little “pocket park,” all in a quiet residential community. This area of Gardena is known for its safe neighborhoods, walkable streets, and vibrant mixed-use properties within close proximity to schools, restaurants, shopping and other service amenities, which are highly sought after by millennial renters.
This $5,850,000 acquisition was effectuated with a loan in the amount of $5,750,000, which includes a mezzanine loan in the amount of $909,000 for the portfolio’s repositioning, which equates to approximately $35,000/unit. We have been re-renting our remodeled one-bedroom units approximately 25% higher than in our acquisition proforma.
