Rosa vita apartments
Levered IRR - 52.1% | Equity Multiple - 2.25x | Asset appreciation 44%
Unit Mix: 1 BR, 1 BA (5) and 2 BR, 1 BA (6)
Number of Units: 11
Building Size: 9, 650 SqFt
Lot Size: 0.87
Acre Year Built: 1961
- Property was on the same city block as Franciscan Apartments
- Previous owner had done a poor job repositioning the property, pouring $100,000 of Capital Expenses into it, completing all the ‘heavy lifting’ items but not optimizing it well enough for disposition.
- Having two properties adjacent to one another allowed us to reduce management costs and services, essentially enabling us to treat these properties as a combined 27-unit complex (16 in one, 11 in the other).
- Finishing the repositioning of the property and optimizing its upside potential.
The complex was fully operating and stabilized within 16 months at a low renovation cost of $40,000. The property sold in just over two years delivering a Levered IRR of over 52% to our investors.
Purchased June 2013
Purchase Price $485,000
Price per Door $44,090
Price per SqFt $50.26
Avg. Rent at Purchase $463/Mo.
Occupancy Rate 90.1%
Total Investment $185,500
Sold in August 2015
Sale Price - $700,000
Rent Increased to $590/Mo. (highest)
Occupancy Increased to 94.7%
Unlevered IRR - 52.1%
Trailing 12 prior to sale, Cash-on-Cash - 16.03%