Paramount Apartments Los Angeles
Paramount, CA
Targets
- IRR 16-20%
- Equity Multiple 1.5-1.9x
- Hold Period 2-5Y
- Minimum Investment $30K
- Year 1 Cash on Cash 3%
- Stabilized Cash on Cash 4.9% in Y1
- First Distribution Dec 2018
- Distribution Frequency Quarterly
- Co-Investment 10%
- Preferred Return 8%
- Investor Profit Share 60%
- Asset Profile Value Add
- Loan-to-Value 70%
- Current Occupancy 94%
About this Property
Fiola Communities is seeking Investors to provide capital funds totaling approximately $600,000 to retire a short term bridge loan on a previously acquired apartment community consisting of two quality garden-style buildings and one house located in the city of Paramount in Southeast Los Angeles County. We have already rebranded the apartments as “The Downey Avenue Apartments,” updated the marketing window and changed the front façade. The total equity to reach full capitalization of the asset is $1.89M dollars after replacing the short term bridge debt
We anticipate holding these assets two (2) to five (5) years and the investor members shall receive an 8% preferred return per annum while equity investments are held by the company. Once the asset income is stabilized, the company will distribute preferred returns quarterly from the property’s excess cash flow. From approved accredited investors, Fiola Communities will accept in its sole and absolute discretion equity investments between $30,000 and $500,000. FC Paramount 17, LLC is the asset entity that was formed to acquire and operate the apartments.
The community consists of 17 residential units in good condition, having a value-added rehabilitation component, which will result in a substantial increase in rents. The buildings consist of seventeen (17) 2br/1ba and one (1) 3br/2ba house. Average rents are almost $500 under the current market rates for comparable apartments and we are already exceeding expected rents on the rehabilitated units. The excellent location and attractive layout of this community with the company’s expertise in rehabilitation will enhance the residents’ enjoyment there.
About this Property
Fiola Communities is seeking Investors to provide capital funds totaling approximately $600,000 to retire a short term bridge loan on a previously acquired apartment community consisting of two quality garden-style buildings and one house located in the city of Paramount in Southeast Los Angeles County. We have already rebranded the apartments as “The Downey Avenue Apartments,” updated the marketing window and changed the front façade. The total equity to reach full capitalization of the asset is $1.89M dollars after replacing the short term bridge debt
We anticipate holding these assets two (2) to five (5) years and the investor members shall receive an 8% preferred return per annum while equity investments are held by the company. Once the asset income is stabilized, the company will distribute preferred returns quarterly from the property’s excess cash flow. From approved accredited investors, Fiola Communities will accept in its sole and absolute discretion equity investments between $30,000 and $500,000. FC Paramount 17, LLC is the asset entity that was formed to acquire and operate the apartments.
The community consists of 17 residential units in good condition, having a value-added rehabilitation component, which will result in a substantial increase in rents. The buildings consist of seventeen (17) 2br/1ba and one (1) 3br/2ba house. Average rents are almost $500 under the current market rates for comparable apartments and we are already exceeding expected rents on the rehabilitated units. The excellent location and attractive layout of this community with the company’s expertise in rehabilitation will enhance the residents’ enjoyment there.
Key Points
- Core Market: This property enjoys tremendous curb appeal and visibility in Los Angeles, the second largest market in the United States for real estate investment behind New York City. This asset is on one of the busiest streets in Paramount providing a huge window to help us promote the property.
- Short Hold-Period: While Fiola Communities underwrites all deals as 2-5 year holds, we have not held any syndicated asset longer than 2 years. Most assets are turned within 18 months.
- Excellent Property: Excellent purchase price, with almost $500/unit monthly in rental upside.
- Great Unit Mix: With amenities including on-site laundry and a community area to see post rehabilitation improvement.
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Assets Under
Management
- Currently
- $57MM 10+ assets
- Exited
- $46MM 10+ assets
- Portfolio LTV
- 59%
Historical
Realized
Returns
- Total IRR
- 26%
- Equity Multiple
- 1.35x
- Annual Cash
- 6.5%
Years Of
Experience
- As Principals
- 30+ years
- In Business
- 9 years
- Size
- 6 Staff * Dedicated investor relations
Assets Under
Management
- Currently
- $57MM 10+ assets
- Exited
- $46MM 10+ assets
- Portfolio LTV
- 59%
Historical
Returns
- Total IRR
- 26%
- Equity Multiple
- 1.35x
- Annual Cash
- 6.5%
Years Of
Experience
- As Principals
- 30+ years
- In Business
- 9 years
- Size
- 6 Staff * Dedicated investor relations
Sponsor Diligence Report
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- Review background check results
- Track record verification
Paramount, CA
The property is located in Paramount, California, in Southeastern Los Angeles County. The City of Paramount has a population of approximately 56,000 while the County of Los Angeles has a population of approximately 9,818,605 according to the 2010 U.S Census Bureau. Paramount is a working class residential suburb of Los Angeles. The City consists of about 63% rental housing stock.
These last decades have been years of rejuvenation. Paramount now is a unique place, known for its successful transformation from what was once a blighted suburb to what’s now an attractive small town graced by tree-lined neighborhoods, white picket fences, public art, pocket parks, and landscaped boulevards. Located at the gateway to the Los Angeles metropolis, the City offers a secure quality of life to nearly 56,000 residents and a business-friendly attitude that has created a growing retail and services sector. Crime statistics are at historic lows thanks to a proactive, balanced relationship with the L.A. County Sheriff’s Department. Paramount has a distinctive look due to a continual investment in its infrastructure and a long-time emphasis on code enforcement and assistance programs that have helped residents and businesses upgrade and maintain their properties. The municipal government is a stable, innovative, and financially conservative organization, with an emphasis on maintaining the quality of life for residents, all of which have established a town that people are proud to call home.
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