Brook Street
Multifamily | 52 Units | $250,000/unit
Marketing description
The Mogharebi Group is pleased to present the opportunity to acquire Brook Street, a 52-unit community located at 1207 West Brook Street in Santa Ana, California. This 2-story, 6-building asset, situated on four separate parcels, benefits from a desirable unit mix of exclusively one- and two-bedroom floorplans. The going-in capitalization rate yield of 5.60%, at the asking price. The value-added market rent produces a market capitalization rate yield of well into the 6% range, at the asking price. Units, which average around 703 square feet, come with fully equipped kitchens, laminate and carpeted flooring, air conditioning, and heating. Tenants can enjoy further amenities amidst the area surrounding the property as it is home to various shopping, dining, and entertainment conveniences, most of which are within an easily walkable distance. Furthermore, four major commuter corridors lay within a 10-minute drive from the property, the 22-, 5-, 55-, and 405- Freeways respectively. These thoroughfares allow tenants easy access to more robust job markets found in the greater Orange County/ Los Angeles County areas. Brook Street is currently operating at full occupancy with rents slightly below market.
Investment highlights
- 100% Occupied with Strong In-Place Cap Rate of 5.18%: Brook Street is offered with a strong going in cap rate, allowing for significant income upside potential through multiple revenue streams.
- Balanced Unit Mix of One- and Two-Bedroom Floorplans: Brook Street boasts an attractive mix of one- and two-bedroom units, all of which come equipped with laminate flooring throughout as well as air conditioning and heating, units average over 700 square feet.
- Attractive Commuter Friendly Location: The property is located less than 10-minutes from a plethora of popular commuter channels allowing for an easy 15-minute commute to Irvine, Newport, and Tustin while also being only a 40-minute commute to Los Angeles.
- Low Gross Rent Multiplier with Upside: Brook Street is currently operating at an in-place 11.32 GRM with additional rental upside through capturing the substantial loss-to-lease and a Section 8 premium allowable rent levels.
- Opportunity to Recapture Significant Loss To Lease: Brook Street provides investors with the opportunity to enhance yield in the near term by implementing annual rental increases, recover valuable loss to-lease revenue as the current rent roll shows an average of $357 per unit upside to capture, and utilize the Section 8 premium
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