Investment Overview

1840-1854 S Fairfield is a four-building, 26-unit apartment complex located in a quiet, tree-lined neighborhood of Douglas Park. The property is surrounded by Douglas Park to the West, Cinespace Film Studios (and the famed Lagunitas Brewery) to the East, the Medical District to the North and train tracks to the immediate south. Crosstown Real Estate Advisors had been managing this bank-owned property for two years and negotiated a deal to purchase the properties at just over $19,000 per unit–but needed to close in seven (7) days from the agreement to purchase so the lender could remove it from their books by the end of 2014.

Although there were no active leaks, the roofs on the buildings were in poor condition and in need of replacement. We replaced the roofs and obtained with a 10-year warranty. Within each unit, we refinished the hardwood floors, painted each unit, provided new HVAC including central air, and installed new appliances, smoke detectors, blinds, faucets and kitchen countertops.

Investment Summary

Once we finished the upgrades to the roofs, interiors and completed some landscaping improvements –we were successful in stabilizing the property and we subsequently sold the property to an out-of-state trade buyer. Our investors were rewarded with a 48.75% IRR and a 2.5 equity multiple in just over 4.5 years of ownership.