From the first month after the 2019 closing date to March 22, 2022, the monthly rent increased from $137,012.48 to $207,765.88, an increase of 52.64%.
Early in the project, we cleared some tenants to renovate vacant units in light of the implementation of California’s new Landlord Rent Increase Management Act, AB1482. There were 24 vacant units on December 1, 2019, and in just six months by mid-2020 had increased occupancy to over 97% and maintained 97% -99% occupancy between 2020-2022.
The project closed with the end of October 2019, and the efforts of all parties to the project through March 2022 increased occupancy to near 100% status in just 17 months, with a 52.62% rent increase.
Since the start of the project, the property value has increased to the current estimate of $38,000,000 due to the rental growth from the remodeling project. Depending on the current market conditions, potential buyers may make offers as high as $39,000,000 to $43,000,000, and the market is currently in a steady upward phase.
