Chateau Marcella is a 38-unit vintage multi-family asset in the heart of the Beechwood Canyon, one of the most coveted neighborhoods in the Hollywood submarket, just below the world-renowned Hollywood Hills. The vast majority of the units are rented at rates significantly below market, presenting over 40% rental upside. In addition to the renovation of vacant units, Primex plans to relocate, renovate and lease up the units over a 3-4 year period, thereby capturing the asset’s significant loss to lease. Primex along with its affiliate, Concord Capital Partners (CCP), will oversee the renovation and lease-up of all current and upcoming vacant units, as well as the renovation of the common area spaces throughout the building.
Purchase Price: $23,023,375 (May 2022)
Equity Cost: $9,048,375
Initial Annual Yield: 7%