Multifamily: Case Study #1
MOney Grows ON The Tree Of Persistence
The principals raised $3,500,000 to acquire and hold distressed real estate from 2010-2017, focusing on small multifamily properties, primarily in South and East Los Angeles. The portfolio was upgraded using equity and cash flow, and 100% of the equity was returned to the partners within 24 months. The portfolio was refinanced multiple times and additional acquisitions were made using proceeds from the financing events. The principals began selling portions of the portfolio as early as 2012 and completed the disposition process in 2017. The approximate multiple on this fund was 8.49x, and carried with it an infinite IRR as initial equity was returned within 24 months.
Details
Capital Raise 1
Fund Life- 7 Years
Initial Equity Raise- $3,500,000
Total Investment- $17,472,000
Total Debt at Conclusion: $8,736,000
Liquidation Event at End of Year 7- $38,480,000
TYPE
Multifamily: Discretionary – Product Type Specific
Current Status
Closed
Case Study #2 : Senior Housing
Solid Returns For Today Good Name Forever
Raised Equity for the development of an assisted living community in Palm Springs, CA. Equity raised $3.6mm, equity out for 18 months, the community was refinanced and $2,000,000 of equity was returned. Currently, annual net cash flow after debt service is $165,000 allowing investors a 10.3% cash on cash return.
Partners in Larrea are LP investors in 9 other real estate and real estate related ventures with a total portfolio value of +$88mm.