LOS ANGELES, CA — FEBRUARY 18, 2019 — Centre Urban Real Estate Partners, on behalf of a high-net worth client, closes on the $1.8 million acquisition of a 8-unit multifamily asset located in the expanding submarket of Baldwin Hills Estates. The asset was purchased at a 5.0% cap rate with an average 30% loss-to-lease factor, leaving significant rental upside. The acquisition is the beginning of Centre Urban's effort to re-balance the client's legacy real estate portfolio, which includes a number of out-of-state tertiary assets.
The seller had renovated the property exterior as well as two of the eight units. Centre Urban, cognizant of our client's desire for a stable asset with potential upside, has put into place a business plan that calls for the steady renovation of units as tenants naturally turn over. Centre Urban, along with sourcing and managing the acquisition process, utilized its extensive network to secure a low-leverage bridge loan in order to fund the required soft-story retrofit of the asset, with the intention of refinancing into a permanent loan upon completion of work.
"This property offers our clients a rare opportunity to invest in an urban West LA asset at a comparatively low basis - $218K a unit - yet with significant potential upside. With all the activity in Culver City and West Adams, we are excited to manage and execute this business plan on behalf of our clients" said Eugene Page, Principal of Centre Urban Real Estate Partners. The asset is located within a five-mile radius of the expansive Kenneth Hahn State Park, Jim Gilliam Recreation Center, Baldwin Hills Elementary School, brand new Kaiser Permanente, and the Baldwin Hills Plaza.
Centre Urban offers brokerage and advisory services, in addition to its own investment and development platforms. For more information on these services, please contact:
Eugene F. Page
Principal, Brokerage & Advisory