701 S. MARIPOSA
EQUITY MULTIPLE 1.25x
LEVERAGED IRR 15.31%
701 S. Mariposa was a vacant 24 unit distressed apartment complex that was acquired all cash through a bankruptcy court auction sale, centrally located in the Wilshire Center – Koreatown submarket of Los Angeles. Both the interior and the exterior of the building were completely remodeled in 2007 at a cost of $3M by the previous owner.
The prior owner master leased the entire building to a single tenant that filed bankruptcy and subsequently defaulted on its lease agreement, which resulted in the owner filling bankruptcy to avoid foreclosure.
DIG acquired the property unleveraged at a significant discount to stabilized market value and below the outstanding debt balance. DIG leased the property to reach stabilized occupancy and then exited via a traditional marketing process achieving superior unlevered returns.