The Edge at Lakewood
Location
Modesto, California
Property Type
Multifamily
Number of Units
196
Key Features
The Edge is a 196 unit, multifamily property located in northeast Modesto, CA and consists of 14 2-story buildings (20% 1 BD, 80% 2 BD) on a 7.63 acresite. All units are market rate.
Units have patio/balcony, ceiling fans, dual pane windows, vaulted ceilings, and pantry/storage closets. Site amenities include a pool and spa, fitness center and reserved covered parking.
1-mile radius median HH income is $82,748
Within walking distance of Lakewood Elementary, one of the best school districts in Modesto.
Purchase Price
$33,300,000
Per Unit
$170,000
Invested Equity
$10,661,000
Target Return
17%
Hold Period
6 years
Acquisition Cap Rate
5.5%
The Edge at Lakewood
Business plan
99.5% occupancy as of the acquisition date.
Increasing Rents to Market: Loss-to-Lease in underwriting was estimated at 9% and growing due to significant demand drivers.
Interior Renovations: renovate 42 unrenovated units over a 3 yearperiod, continuing the Seller’s upgrade package, which will bring the property to 72.4% renovated units. Unit renovation costs average $10,000 per unit.
Exterior Enhancements: Leasing office, fitness room, clubhouse, and pool area have been renovated. Planned landscaping, signage and lighting enhancements at the property.
ESG initiatives include outdoor amenities, electric vehicle charging, solar energy system, energy efficient appliances, LED lighting, and low VOC paint and flooring.
Since acquisition, current trade out rent for new rentals is averaging a 32% increase. Unit market rents were increased by
