Strategic Realty Capital News Center

SRC Acquires 1,000 units in the 3rd Quarter of 2011

Strategic Realty Capital ("SRC") has completed the acquisition of approximately 1,000 apartment units in the 3rd Quarter of 2011: Eastport Apartments located in Jacksonville, FL, Sun Bay Apartments located in Winter Park, FL, Cheyenne Woods (to be renamed "Parkwood") located in Las Vegas, NV and The Cove at Biloxi Bay located in Biloxi, MS (formerly known as Edgewater Bend).

Eastport was constructed in 2008 and is an "A" quality apartment community consisting of 440 units. Eastport's occupancy was recently stabilized at 95% and has been the lowest rent provider for "A" quality communities in its submarket during the lease up period. With minimal interior and exterior amenity upgrades, Eastport will be able to raise rents and close the rental gap compared to its competitors.

Sun Bay was an REO acquisition from Fannie Mae/Ocwen Servicing. SRC plans extensive upgrades of major property systems which include installation of individual heating/air conditioning and water heaters in each unit erasing the need of the dated chiller/boiler systems. SRC also plans to modernize the interiors and create new amenities such as a volleyball court, social areas, new playground, bbq grill stations, new gym and a dog park to attract the Full Sail graduate students which is less than 0.5 miles away from the property.

Parkwood is being rebranded to distinguish it in the neighborhood. This was also a lender owned property that was foreclosed earlier in the year. The property was lacking many amenities and SRC plans to update the interiors and create the following amenity items: new gym, new playground, new bbq grill stations, new dog park, and a business center with free WIFI access.

The Cove at Biloxi Bay has been rebranded and also was a lender owned foreclosure from Fannie Mae. SRC will cure all deferred maintenance items such as leaky roofs, leaky windows, old gutters, chimney repairs and etc. In addition, SRC plans to install a new monument sign, upgrade the interiors with new baseboards, new vinyl wood flooring, new faux granite counter tops, new washer/dryers and new appliances as needed. SRC will also upgrade the landscaping, expand the old fitness center, install a new dog park and upgrade the pool furniture.

SRC will close out the year with approximately 5,500 units owned and managed and is planning for even a bigger year in 2012!

SRC Announces the Acquisition of 3 Communities in the second quarter of 2011

Hunters Way in Jacksonville, FL: SRC has acquired a 200-unit 99% leased apartment community in Jacksonville, FL. SRC was attracted to the property by the extensive renovations of interiors that had been completed by the seller and the high occupancy rate (99%) of the property, along with the prime location in the upscale Mandarin submarket of Jacksonville. The property interiors were fully upgraded by the Seller including installation of washers and dryers, new counter tops, new black appliances, new hardware fixtures, new cabinetry and new flooring. SRC has commenced the renovation of the exteriors and is applying a two-tone paint scheme, new signage/monument package, new roofs, an expansion of the current leasing office and general landscaping upgrades including a new irrigation system. Financed with a CMBS loan in the mid 5.0% range for 10 years, the property will show strong cash on cash returns (10%-15%) from the inception of the investment.

Arville Park in Las Vegas, NV: SRC has acquired 140 units as an REO foreclosure from an institutional lender.  At close, the property was 86% leased and with the installation of its new management team, SRC achieved 92% leased occupancy within 30 days of taking ownership of the asset. The location is stellar at the corner of Sahara & Arville Ave., just a short mile west of the I-15 freeway and the Las Vegas "Strip." Planned upgrades will include a new leasing office by the pool, landscaping upgrades, a new dog park, new bbq grills, new pool furniture, new monument signage, new playground and other amenity upgrades throughout the community. This was an all cash purchase with a quick closing time frame to accommodate the seller's needs. It is anticipated that the property will be refinanced within the first year of ownership.

Enclave at Prestonwood (P.K.A. Monaco Parc) in Addison (Dallas), TX: SRC has acquired 466 units and is located in the prestigious Addison area of North Dallas. SRC's business plan is to upgrade the property from a B- to a B+ asset. The renovation plan includes the addition of new Hardi-Plank Lap Siding, new and upgraded signage/monuments, interior renovations, common area pool and fitness amenities along with lush landscaping. A name change and "new branding program" will complete the transformation the property. The property was closed quickly All Cash and SRC plans to place temporary financing until the property is fully stabilized.

SRC Completes the Repositioning of 3 Las Vegas Communities in less than 12 months!

SRC focuses on providing "A" amenities to working class residents and in turn, increase the cash flow of its properties. As an example, SRC purchased three Las Vegas assets in May 2010, which were generating an annualized negative cash flow of $200,000. Upon execution of its business plan, by April of 2011, SRC upgraded the leasing office, pool furniture, new signage, exterior flagstones, new striped parking lots, new playgrounds, new dog parks, new business centers with wifi access, new roofing and several other upgrades. As a result, SRC turned the annualized net operating income to a positive $1.4 million per year!

Completion of 9 Class B and C Multifamily Apartment Acquisitions

Santa Monica-based real estate investment firm, Strategic Realty Capital, LLC (SRC), announces the completion of nine (9) Class B and C multifamily apartment acquisitions in 2010. SRC is a proven value-add investor in the multifamily/residential rental properties market and now owns over 3,200 units nationwide, concentrating on markets in the Southwest, Midwest, and Southeast regions of the United States.

The new acquisitions were Distressed, Lender-Owned, or Receivership Sale properties and SRC has the vision and capital to rediscover value and operational efficiencies through their superior investment selection process and hands-on asset management capabilities. Apartments have a long track record of having the highest risk-adjusted investment returns compared to other property types. The sector has proven to be most resilient during economic downturns, delivering superior returns during both growth and recessionary periods.

Co-founder Charles Hill commented on the success of 2010 and future outlook saying, "Many investors failed to pull the trigger over the past 12 months, expecting a more deeply discounted property market or prolonged deterioration of the U.S. economy. The odds of either occurrence have further diminished. The low-hanging fruit may be gone, but attractive discounted investment opportunities still exist going forward." SRC acknowledges that economic and market risks remain and must be assessed, but are optimistic about attractive opportunities in 2011. SRC is committed to continued success in and reaching the goal of a 10,000+ unit portfolio over the next couple of years. . "Ultimately it comes down to aggressive asset management to maximize revenue and control expenses," says other Co-founder Eddie Lorin. He adds, "we want the keys to the real estate in some cases it will be after the debt traders have made their trades and then it always comes down to operations."

Contact Details:
Strategic Realty Capital
1411 5th St., Suite 406
Santa Monica, CA 90401
Office: 310-566-1320