Palmwest Fund 6
Own part of an iconic property, in the heart of Costa Mesa.
12 Units + Commercial
Located in the highly sought-after Harbor area of Costa Mesa, and situated on 17,920 SF of prime real estate, Harbor Mesa Apartments is a unique opportunity with potential upside in rents of approximately 41%.
As a value-add deal investment, Palmwest Capital projects a conservative 38% cash on cash within a year, after renovations are completed and the buildings are re-tenanted.
Harbor Mesa
Deal Snapshot
CAP Rate Pro Forma
5.44%
Purchase Price + Construction
$3,750,000
Number of Units
Projected Cash on Cash
38% +
12 Units + 1 Commercial Retail
Net Operating Income
$203,906
Projected Cash-Flow Yr 1
$113,906
Projections are based on Year-1 performace expectations. Additional projections can be found below.
Excellent Location. Strong Demographics.
Invest with Confidence.
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Stability.
Real estate is less volatile than traditional investments, and has historically outperformed the S&P 500. Leverage allows you to buy more for less, and grow your investment through amortization & appreciation.
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Cash-Flow.
All Trident Investors receive direct payouts and disbursements through net Cash-flow of the assets acquired. See a growing return on your capital as the asset matures, and Cash-flow improves.
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Appreciation.
We focus on Class A & B multi-family assets in strong demographic and coastal areas of Southern California, that have historically seen significant appreciation, driving value to our Investors.
Initial Investment Strategy
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The property sits on Harbor Blvd in Costa Mesa, which has seen significant appreciation and rent growth in recent years. There are million-dollar+ condos and townhomes just a block away. The property was originally listed at $3.89M, but after negotiations we entered contract at $3.5M. After inspections and further negotiations, we received seller concessions and will be closing at $3.2M; $690,000 off list.
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Seller financing at an LTV of 56% [Seller mortgage at $1,800,000] at 5% interest rate; no prepayment penalty after Jan 1st of 2024. Construction estimates are $550K [$450K bid plus buffer of $100K]. Total of $3.75M [$3.2 purchase price plus $550K constructions costs]. Equity of $1.95M: Palmwest Capital, the Managing Member, will be providing at least $1.3M. $650K open to investors; minimum of $25K.
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Our plan is to have this property renovated by the end of this year and ready to sell targeted Q2 of next year. The property adjacent has already been cleaned up by another group, and their rent projections are coming in higher than anticipated. Based on the performance of the property next-door, we estimate this property will sell in the high $4M to low $5M range. Even at a very conservative $4.5M, the return equates to a cash-on-cash return of approximately 38% before transaction expenses.
“Those who become wealthy are those who buy assets.”
— Robert T Kiyosaki, Rich Dad, Poor Dad
Pro-forma Detail & Financing Expectations.
FAQs
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Investors can see returns in multiple ways, including cash distributions based on prorated share of Cash-flow, tax benefits such as Depreciation, growth in value via Appreciation, and Amortization through debt service. Palmwest handles all accounting and distributions. Investors will receive quarterly reports and projected distributions annually.
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Palmwest’s intent is to hold assets for 10+ years, but we have sole discretion to extend the life or even decrease the life after you have invested. The reason for this is we want to maximize the value of the real estate investments. We do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell investments when the market is great. We are long-term investors and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents.
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We have a minimum investment of $25K, and we hope that any potential investors are looking to make a meaningful investment of $50K or more, but we can certainly consider less depending on individual circumstances or comfort level. Majority of Investors commit $50K-$200K.
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Yes - all current Investors and new investors will have access to future deals.
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Returns and K-1s are distributed annually, however it is possible as assets mature and stabilize, and cash-flow increases, that additional distributions could occur during the year.
