Senior housing : Case Study #2
Solid Returns For Today Good Name Forever
Executed the capital raise and development of a high quality 35 bed assisted living community in Palm Springs, CA. Total Equity raised $3,600,000 with an 18 months delivery and stabilization period. the community was refinanced in month18 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.
Details
Capital Raise 2
Fund Life- 4 Years
Initial Equity Raise- $3,600,000
Total Investment- $3,600,000
Total Debt at Current: $2,000,000
Liquidation Event- Open- Refinanced out $1,600,000 of equity.
Estimated Market Value- $5,000,000
Cash on Cash Return Current: 15%
TYPE
Community: Asset Specific
Current Status
Open
Partners in Larrea are LP investors in 9 other real estate and real estate related ventures with a total portfolio value of +$88mm.
Case Study #1 : Multifamily
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 cashflow, 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