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315 Cherry Ave Acquired!!!

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.

Download Flyer



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


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 Merriman and Aaron Lujan have a proven 13-year track record of 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 and IRA investors.

*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

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