In late 2013, Quest Capital Partners (“QCP”) acquired this mixed-use apartment and retail property in the quaint sub-market known as Kenneth Village, a neighborhood shopping area located in Northwest Glendale. Purchased for $3.2 million in 2013, QCP invested approximately $1,200,000 and obtained a loan of $2,194,000 from Opus Bank at an interest rate of 4.30% on a 5-year term.
The property suffered from significant retail vacancy and significant deferred maintenance in the commons areas, retail suites, and apartments.
QCP capital improvements to the property included the following:
After completing renovations to the common area and exterior of the property, QCP was able to increase and increase cash flow. The much-needed capital improvements were welcomed by current and incoming residents which resulted in a higher retention rate and an 40% average increase in rent.
QCP sold the property in 2019 (6-year hold) for $6,000,000 which represented a 27.72% internal rate of return and approximately a 3.45x equity multiple on the investment.