BENA Capital Announces Sale of Merced Investment

BENA Capital LLC, a real estate investment fund manager, has completed the sale of its multifamily residential property in Merced, CA.  “This was a home run for our investors as we delivered returns that significantly exceeded projections,” said Managing Director Yousif Abudra.

 

Value-Add Approach

BENA Capital took a value-add approach and implemented a phased renovation strategy to increase the occupancy rate of the property from 20% to 100% within 8 weeks of purchase.  Once fully occupied, the property produced cash flow returns to investors that were 38% higher than originally projected.

Managing Director of Acquisitions, Kimberly Yeh selected the Merced asset based upon its location and value-add potential, saying “We identified the Merced asset in January 2016 as an attractive acquisition opportunity due to the property’s strong value-add potential and the region’s notable growth trends.  Located within 15 minutes of the UC Merced campus, and less than a mile from the new $46MM UC Merced Downtown Center, the property was poised to benefit from the prime location coupled with a value-add approach.”

 

Strong Investment Return

Yousif Abudra said, “The team came together to produce a strong result for our investors.  Our contractor began work immediately after acquisition, and delivered the project on time and on budget.  Meanwhile, our property management team hit the ground running to bring the occupancy up to capacity.  Due to both of their efforts, we were able to not only achieve 100% occupancy, but do so at above-market rents.”

The property sold to a local investor looking for a turn-key, stabilized investment. 

“We were able to sell at a premium because we delivered what the market was looking for – a stable, cash-flowing asset.  The Merced property shows the true power of implementing our value-add strategy.  Our investors achieved a stunning IRR (Internal Rate of Return) in 20 months – without utilizing any debt,” Abudra concluded.

About BENA Capital:

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets.  BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification.  Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

To learn more about BENA Capital, visit: http://www.bena-capital.com/

Merced Investment Achieves 100% Occupancy at Above Market Rents

April 22, 2016 – BENA Capital is pleased to announce that its Merced investment has achieved 100% occupancy.  In addition, it has done so by attracting qualified tenants at above market rents.

In February 2016, BENA Capital closed on a residential multifamily apartment complex, acquired as a value-add investment.  At closing, the property was 20% occupied and required repairs to be brought up to rentable condition.  Contractors began work immediately post-closing and repairs/improvements were completed within three weeks.  While the repair work was in process, the property management firm successfully marketed and began leasing units.  With the final unit now leased, the property is in a position to generate long-term positive cash flows while also resulting in built-in price appreciation due to the improvements completed.

The purchase was made through the BENA Capital - Alkaid Fund LP limited partnership, using 100% cash and no debt.  BENA Capital raised the full amount of the purchase price in cash from investors, enabling the fund to purchase the property at a discount to fair market value.  Additionally, the full cash offer allowed the fund to out-compete rival bidders.

BENA Capital specializes in 100% equity based real estate investments with a primary focus on Value-Add and Core-Plus properties. BENA Capital has owned, developed, and managed multi-family residential, single-family residential, and condominium properties throughout California. BENA Capital has a history of identifying real estate investment opportunities through its established network of strategic relationships. The BENA Capital Investment Team focuses on properties it believes to be under market value, that do not qualify for mortgage loans, and where value and returns can be created through targeted operations management to achieve full productivity of the asset.

To learn more about BENA Capital, visit: http://www.bena-capital.com/