Revamp, Flip of Sunnyvale Apartments Brings Investor 45% Profit
Topic:
A 37-unit apartment building in Sunnyvale has sold for $15.7 million — netting the seller a tidy profit for a building it bought just over three years ago and revamped.
Calvera Partners said it sold the property at 1090 Saratoga Road at an 89 percent price increase over the $8.325 million it paid for the complex in January 2014. It didn’t disclose the buyer in the deal, which worked out to $424,000 per unit.
The company also put $2.5 million into a major renovation of the building, a 1960s-era apartment complex formerly known as Crestview Terrace. Including the renovation costs, Calvera’s profit works out to about 45 percent.
That puts the flip right in line with how Calvera describes its typical business strategy: Buy up aging apartment complexes, renovate them and sell them for a profit. The company said it’s sold five properties for an estimated average internal rate of return of 41.8 percent.
Calvera said it typically renovates properties “using inspiration from the boutique hotel industry.” Among the upgrades the apartments received are remodeled kitchens and bathrooms, new flooring and new LED lighting fixtures and electrical work. The complex also has a revamped pool area with outdoor art, bicycle storage, a dog-friendly courtyard and a Wi-Fi equipped tenant lounge.
“This community underwent the most significant physical change of any property we’ve owned,” David Saxe, managing principal at San Francisco-based Calvera Partners, said in a statement. “It was in disrepair when we took ownership and needed a major renovation and image upgrade. We spent more than $2.5 million renovating the property both inside and out to create a community that is modern, interesting, and functional for today’s renter.”
With its new look, the complex also got a new name — pksl (pronounced “pixel”) — and is themed around Atari, the Sunnyvale-based computing and video game company that helped to spawn Silicon Valley’s tech industry.
“Our vision sets our properties apart from our peers and establishes cachet rivaling new apartments,” Saxe said in a statement. “As much as we’d love to hold the property forever, we received an offer that fully recognizes the work we put into the building and this sale will generate a substantial return for our investors in less time than anticipated.”
https://www.bizjournals.com/sanjose/news/2017/08/15/revamp-flip-of-sunnyvale-apartments-brings.html
Author
CONTACT
SAN FRANCISCO OFFICE:
2 Embarcadero Center, 8th Floor
San Francisco, CA 94111
MINNEAPOLIS OFFICE:
729 Washington Ave N, Suite 600
Minneapolis, MN 55401
Please subscribe me to the Calvera Insider.
GET INSIDER UPDATES
GET INSIDER UPDATES
© 2024 CALVERA PARTNERS
Performance data listed in this website or is otherwise provided by Calvera Partners, LLC, or its affiliates (“Calvera”) with respect to a particular property or project represents past performance calculated for the relevant project and does not purport to reflect the overall performance of any private funds managed by Calvera, which may include other projects, as well as charge additional fees or carried interest, or have additional expenses, which would reduce the overall performance of the project from the perspective of a fund investor. Past performance does not guarantee future results; Current performance may be lower or higher than performance data presented. Calvera is not required by law to follow any standard methodology when calculating and representing performance data; the performance of any of Calvera’s projects may not be directly comparable to the performance of other investment vehicles or funds; and qualified potential investors can contact Calvera Partners for more current performance data of any private funds managed by Calvera.
This website is provided for informational purposes only. Nothing contained in this material is an offer or solicitation to buy or sell any security. In addition, (i) any securities offered to investors that respond to any general solicitation or general advertisement made by Calvera, may be sold only to accredited investors; (ii) such securities will be offered in reliance on an exemption from the registration requirements of the Securities Act and such securities offered are not subject to the protections of the Investment Company Act or required to comply with specific disclosure requirements that apply to registration under the Securities Act; (iii) Neither the SEC, nor any state securities regulator, has passed upon the merits of or given its approval to any securities offered by Calvera, the terms of the offering, or the accuracy or completeness of any offering materials or the accuracy or completeness of any of the information or material provided by or through this website; (iv) the securities will be subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; and (v) investing in securities involves significant risks, and investors should be able to bear the loss of their investment. Please click here for additional important disclosures.