The Prospect

Overview

Re-imagined and re-defined, Prospect is Valiance Capital’s flagship project that is revolutionizing what student-housing can be.

With over 20,000 sf. of luxury living spaces and unrivaled hospitality and amenities, Prospect was transformed from a neglected student-housing property—with few tenants at the time of acquisition— into the premier, up-scale student co-living community within walking distance of UC Berkeley.

Construction Timeline: 6 months

Stabilization Timeline: 12 months

The Stats:

ACQUISITION PRICE:
$10,665,000

CAPEX BUDGET:
$4,120,000

HOLD PERIOD:
10 Year

PROJECT LEVEL IRR:
24.6%*

EQUITY MULTIPLE:
2.80x*

*BASED ON ASSUMPTION IF
THE PROPERTY WAS
SOLD TODAY.

The Opportunity:

Student Housing around UC Berkeley is immensely supply-constrained, and the need for better quality housing is clear. Valiance was presented an opportunity to acquire a highly distressed and mismanaged property suffering from excessive vacancy, depressed rental income, significant deferred maintenance, and multiple city code violations.

The Challenge: 

In order to avoid missing the end of a highly cyclical leasing season, Valiance was faced with a short timeline of only 90 days before the start of the next Academic year and was pressed to execute their business plan rapidly and efficiently.  Delivering on time was critical.

The Execution:

Valiance successfully executed a $4 million capex budget in 3 months, self-managing the majority of direct construction labor, and pre-leasing 100% of the units while still under construction during the final (6)six weeks leading up to the start of the school year.  Valiance, along with its sister property management company, The Berkeley Group, proudly delivered the project on time and coordinated a successful move-in of most of its residents in only one day.  Furthermore, Valiance successfully stabilized the project after (4) four months of ownership and executed a permanent cash-out refinance within 12 months—all while entering a heavily impacted credit market in the midst of the COVID-19 global pandemic.

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Valiance Capital LLC
2425 Channing Way Suite B
PMB #820
Berkeley, CA 94704

investors@valiancecap.com

Valiance Capital is a privately held real estate development and investment management company with a primary focus on multi-family and student housing properties.

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