Lyon Stahl is pleased to present this incredibly rare investment opportunity to purchase a (52) Parcel, Single Tenant Residential Portfolio centrally located in Hemet & San Jacinto. The entire offering consists of (40) Single Family Residences and (12) Fee Simple Mobile Home Lots w/ Well Maintained Dwelling Units. Of the (52) total parcels, (28) are located in 55+ Communities. These
communities offer an excellent Tenant Mix due to the significantly low turnover rate, minimized landlord obligations, and reduced maintenance expenses. All (52) units are owned and operated by experienced, lifelong owners in the area who have maintained tranquility amongst the tenants and have the portfolio running like a well-oiled machine. This infrastructure is an important part of
the portfolio that is not to be overlooked. Additionally, due to the Portfolio Mix of Single-Family Rentals, these parcels are subject to little-to-no Rent Control Restrictions (Buyer to Verify).
One of the main draws to this single-tenant portfolio is there is virtually NO UTILITY EXPENSES for the Landlord. Aside from (1) parcel’s water bill, the tenant’s pay all Utility Expenses across the entire portfolio. This, along with aggressive pricing, has induced a Going-In Cap Rate of 6.75% with an upside of 7.76% at Market Rents. In total, we are offering a total Building Area of 49,317 SF at $161.50/SF and a Total Land Area of 273,119 SF at $29.16, both of which fall significantly below the comparable prices. Moreover, to appeal to investors of all types, we have broken down the entire portfolio into (8) Sub-Offerings, ranging from (3) to (16) parcels. Links to each individual portfolio can be found in the Table of Contents (Pg 2) of this Offering Memorandum. Additionally, there are Rent Rolls, Parcel Maps, and Financial Summaries of each Sub-Offering in Section 05.
In final, from a macroeconomic standpoint, many are forecasting that Shifting Demographics and Supply will drive the Single-Family Rental Market to outpace the Multi-Family Sector in Rent, Revenues, and NOI Growth over the next few years. Additionally, even before the pandemic, the Housing Affordability Crisis was pushing people out of large cities, but now with more lenient
policies about working remote and rising concern around close-quarter living, more and more tenants are likely to seek spacious homes in more affordable suburbs. For all of these reasons, the SFR market has garnered extensive institutional interest, including JP Morgan’s recent $625 Million Investment into the space.
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