LMDG Real Estate Value Fund II, LP has acquired its first asset, an 8 unit value-add apartment building located in Alamitos Beach (Long Beach, CA). The property was acquired at approximately 60% of replacement cost and is operating at rents 40% below market.
The property is strategically located near Long Beach's Retro Row, a unique eclectic enclave of approximately 100 independently owned and operated businesses that offer goods, restaurants, and entertainment.
LMDG will renovate and stabilize the property (rent-at-market) at which time we estimate the value to be in the $2.9m - $3.2m range.
Fund II is still open for investment. For more information, download our flyer which outlines the strategy of the fund, track record, fund structure, and projected returns.
Property
Project Name: Bixby Park / Retro Row
Lot Size: 6,754
Sqft: 6,392
Units: 8
Location: Alamitos Beach
Stabilized Cap Rate: 8%+
Project Summary
Purchase Price: $1,775,000
Renovation Budget: $330,000
Total Project Cost: $2,105,000
Stabilization: 9-12 Months
Stabilized Value: $2.9M - $3.2M
Fund II Investor Terms
The Fund: LMDG Real Estate Value Fund II, LP
Fund Size: Up to $15 million of equity
Manager: Lujan-Merriman Development Group
The Term: Five years
Equity
Ownership: 30%
Distributions: Cash flows from operations and sales to be distributed pro rata quarterly
Fund II Target Investments
Acquisition Size: $1.5 - $5 million
Property Types:
Multifamily
In-fill land
Single-family residential
Location: Coastal markets within Orange County and Los Angeles County as well as key submarkets within Los Angeles and Hollywood
Leverage: Up to 65% leverage on a portfolio basis
Target Return:
18% - 22%+ net IRR
1.8x - 2.2x Net Multiple
Aaron MerrimanandAaron Lujanhave a proven13-year track recordof doing value-add real estate investing. Please contact us if you would like more information on our current fund or learning more about investing with LMDG. We have investment options for both cash andIRAinvestors.
*Annual rate of returns may vary. Please contact LMDG directly for additional information on the investment options. Past performance is not indicative of future results.
Lujan/Merriman Development Group
5050 E. 2nd Street #14806 Long Beach CA 90853 United States
