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