Case Studies | Cambridge Garden Apartments
Cambridge Garden Apartments
76-Unit Multi-Family Community
2601 E. Valley Boulevard | West Covina, CA
Sales Price: $12,450,000
Seller: Redfern Family Trust
Buyer: Dominic Guadagno
Units: 76
Price per Unit: $163,816
Price per Sq. Ft.: $168.64
Current CAP: 5.44
Current GRM: 10.95
Market CAP: 6.23
Market GRM: 9.47
Year Built: 1978
Lot Size Sq. Ft.: 219,542
Gross Bldg. Sq. Ft.: 73,826
Net Rentable Sq. Ft.: 73,826
Financing: Washington Mutual
First Loan Amount: $5,950,000
On Market Date: June 13, 2007
Close of Escrow: January 24, 2008
Seller Strategy | Business Plan
The seller is a private investor whose strategy includes finding value-add opportunities and employing a three-to-five year hold plan. With a three-year interest-only loan to mature in November 2007, the seller’s loan would have shifted to principal and interest, hence his decision to sell.
Buyer Strategy | Business Plan
The buyer is a private investor who utilizes his own management company. He seeks out value-add opportunities with the goal of rehabilitating the units, increasing rents, and ultimately filling the property. The San Gabriel Valley was an excellent market for investment and well-suited to the buyer’s strategy.
Process and Outcome
This was a six-month transaction process, during which the debt market took an aggressive turn. West Covina became oversaturated with investors, forcing rents lower than expected. With our extensive marketing program and persistent Business Development Team, The Harris Group procured a private buyer looking to invest in a 1031 exchange, fulfilling to the needs of the seller.
Client Quote
“As the owner of more than 2,500 units, I have to give The Harris Group much of the credit for my success.”
Tom Redfern, Redfern Family Trust