Construction Timeline: 16 months
Stabilization Timeline: 24 months
KEY HIGHLIGHTS
Acquisition Price:
$13,751,500
CAPEX Budget:
$2,000,000
Hold Period:
7 Year
Project-Level IRR:
20.0%*
Equity Multiple:
1.98x*
*Based on assumption if property was sold today.
The Opportunity:
Affordable workforce housing in the Bay Area is extremely supply-constrained, and there is pent-up demand for well-maintained, tastefully attractive housing. During a multiple-round bidding process, where Valiance wasn’t originally awarded the opportunity, Valiance’s prudence and patience paid off as the property fell out of escrow numerous times. After nearly 6 months from when the property first hit the market, Valiance was finally able to secure and purchase it at nearly 20% below its original asking price.
The Challenge:
The property had changed hands three times in the previous 5 years of ownership, giving rise to lingering distrust from the community as well as hostile tenants. The property was not subject to rent control, and there was concern that a new owner would come into price gouge and implement unaffordable rent hikes. The challenge of renovating units without displacing or evicting existing tenants was a significant hurdle to overcome, all while Valiance made plans to invest $2 million in capital improvements into the community while maintaining strong landlord-tenant relations.
The Execution:
Valiance had to take a very diligent, hands-on approach and met with all residents to re-establish rapport and hosted community events to rebuild a community that was envisioned for the Property. Valiance was also able to protect the housing of its residents, some who had lived there for over 15 years. After a thoughtful strategy of rebuilding and revitalizing the community over two years, instead of one, Valiance successfully executed their business plan in 24 months and fully stabilized the project, which led to a cash-out refinance in February 2020.
Valiance Capital is a private real estate development and investment firm specializing in student and multifamily housing.
Access the Highest-Quality Real Estate Investments
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Valiance Capital
2425 Channing Way Suite B
PMB #820
Berkeley, CA 94704
investors@valiancecap.com
(510) 446-8525
©2023 Valiance Capital. All Rights Reserved.
Valiance Capital
2425 Channing Way Suite B, PMB #820
Berkeley, CA 94704
investors@valiancecap.com
Valiance Capital is a real estate development and investment management company specializing in student and multifamily properties.
Access the Highest-Quality
Real Estate Investments
Invest Like an Institution
©2023 Valiance Capital. All Rights Reserved.
Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Neither Valiance Capital nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees and expenses. Prospective investors should consult with a tax or legal adviser before making any investment decision. For our current Regulation A offering(s), no sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth (excluding your primary residence, as described in Rule 501(a)(5)(i) of Regulation D). Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.