Vince Norris, Berkadia’s managing director, institutional sales, facilitated the deal.
“The property is an excellent low-density physical plant, [with its] original owner, purchased off market, an excellent location, and a value-add opportunity,” Aaron Pacillio, Davlyn’s director of acquisitions, told MHN. “It has excellent risk-adjusted returns for our investors in the value-add space.”
1750 on First consists of one- and two-bedroom units, with central heat and air, plus in-unit washer/dryers. Upon completion of a planned renovation, units will include stone counters, new cabinets, wood inspired flooring, tile backsplash, new interior doors and fixtures, as well as stainless steel appliances.
Upgrading the property
Originally constructed in 1986, the property has never been renovated, though its interior, exterior and grounds have been maintained. According to Pacillio, Davlyn will be making some needed upgrades and renovations to the community, as well as enhancing staffing and marketing.
“We will be adding a fitness facility and will update the exterior of the property to the equivalent level of the Cass A, luxury offerings in the area,” he said. “That will include new metal balcony railings, designer four-color paint scheme, etc. Our research indicates there is rental upside in doing so.”
Lending for the project was headed by Ryan Blair with City National Bank.
According to Pacillio, Simi Valley is an excellent bedroom community and this particular asset is walking distance to major retailers, Starbucks, a movie theater and local park, and is adjacent to a bike trail.
“All in all, it represents an excellent live, work, play lifestyle; particularly appealing upon completion of the renovation plan,” he said. “In addition, it is just a few miles from two other multifamily assets we own in Simi Valley, providing us with economies of scale and specific expertise in the market.”