Acquired a 310,000 sq/ft Industrial Park in June 2016 which is 19 acres with a loan from Wells Fargo Real Estate division. Since the acquisition the property has undergone significant improvements including a complete new stucco façade, 60 ml roof overlay on all buildings, LED lighting throughout the complex, 190 units of self storage , 60 ft pylon sign on the freeway, security gates, cameras and new asphalt overlay. All of these improvements have been accomplished within a 2 year cycle.
This property was acquired at occupancy rate of 76% and average lease rate of 42 cents. In less than 18 months, through vigorous leasing activity the occupancy rate reached 96% with 55 cents/ft average lease rate. The property has won VIP awards twice in a row.
Acquired a 130,000 sq/ft Industrial Center in Aug. of 2017 with Wells Fargo Balance sheet loan. Currently, the property is undergoing full as-built plans, modification structural plans for seismic retrofit of the property, architectural enhancements with new paint scheme and metal awnings, roof overlay, security gate, signage for revenue and branding and parcel mapping for exit in multiple stages. Although Alvarado renovation/construction has not started, we are in the process of designing the structural engineering phase. The following is a summary of planned improvements:
Re-drafting as-built plans and X-ray certain critical structural supports to draft the structural engineering to reduce the PML seismic numbers on approximately 105,000 sq/ft to mid-teens with lender and city approval. These plans will be checked by computer simulation programs for effectiveness.
Implement the approved and calculated seismic measures to significantly improve the structural integrity of the buildings.
Malibu, CA. Oct. 2014-2017 – This property was acquired as a neglected, deferred maintenance apartment building; however, all the units had white water ocean views. The property was purchased with IDB Bank financing of the 50% of acquisition loan plus 10% line of credit. These funds were used towards complete rehab of the exterior and interior of the property to a modern architectural look, with glass railing, wood accent and smooth stucco on the exterior. All of the fixtures, cabinets, kitchen appliances, bathrooms, lighting, ceiling dry wall and flooring was replaced with a new and fresh modern look. As a result, this non-rent-controlled property boosted a 75% growth in its gross revenue and ultimately a significant increase in NOI. This property was a safe investment with high IRR.