Beach City Capital is under contract to acquire 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, with numerous office and retail opportunities on Washington
Boulevard, the properties are excellent candidates for repositioning. The average home sales price in Mar Vista average has increased 83% from 2012 to 2016.
W have formed a JV land Partnership and will build 37 for sale condominium units. There will be at grade secured parking, amenity space and 37 units using California State Affordable Density Bonus Code section SB1818.
The Sponsor’s conservative underwriting yields levered returns of 29.5% IRR. 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
Beach City Capital is currently in the Conceptual Design phase. The project will benefit from the State Desity Bonus Law SB 1818 and will obtain a maximum desity increase of 35%. More information coming soon.