Mar Vista I 37 unit Condominium Project

Site Context

Beach City Capital has acquired 12757-12767 Mitchell Avenue, which contains 25 units across three existing multifamily buildings.

With current rents substantially below market, and a prime location near Venice Beach and Marina Del Rey, and surrounded by numerous office and retail opportunities on Washington

Boulevard, the properties are excellent candidates for development. The average home sales price in Mar Vista has increased 83% from 2012 to 2016.

Project Overview

Beach City Capital has formed a JV Partnership with the land owner and will build 40 for sale condominum units. There will be at-grade secured parking, amenity space and 40 units. This $3.8M of Equity is available for investment in Classes A, B and C.

Investment Deal Points

The Investment

The Sponsor’s conservative underwriting yields levered returns of 32.8% IRR, an equity multiple of 1.72x, and a profit of $6.6M. For sale market comparables within a 1/4 mile of the property average $798 psf. New homes within a 1.5 mile radius have recently sold for greater than  $1,200,000 ($827 psf). Beach City Capital’s financial analysis therfore assumes a highly conservative sales price of $732 psf.

Entitlements & Construction

The Project will take about 8 months for Entitlements and 6 months for Building Permits. More information coming soon.

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