In October 2013, Fund 1 purchased a 17-unit garden style apartment complex for $1.477 mm in Alamitos Beach. The rents were 40% below market, and the property needed $125,000 in CAPEX expenditures in order to achieve market rents. During the hold period, the fund increased rents significantly, which allowed for a significant increase in asset valuation. In April 2017, Fund 1 sold the asset for $2,650,000 representing a 34.8% IRR over a 3.5-year hold.
