Increasing density allows you to create value in real estate assets

Turnstone Capital recently purchased a multi-family property, located in Inglewood, on behalf of our partner, a publicly traded company in Japan.  Prior to purchase, a physical inspection revealed an opportunity to add value by increasing density.  At purchase, the property was comprised of a mix of 2-bedroom and 3-bedroom units, but during the renovation process, one bedroom was added to each unit.   In the end, through thoughtful planning, top-of-the-market renovations, and increased density, Turnstone Capital created instant equity, increased rents, and dramatically improved overall returns.

Project Statistics:
Unit Mix At Purchase:  2-bedroom and 3-bedroom
Unit Mix After Stabilization:  3-bedroom and 4-bedroom

At Purchase:                                                  After Stabilization:
CAP Rate: 2.97%                                            Stabilized CAP Rate: 6.11%
Rents, 2-bed Units: $1,079                             Stabilized Rents, 2-bed Units: $1,722
Rents, 3-bed Unit: $1,236                               Stabilized Rents, 3-bed Unit: $1,895