Lee Commercial Properties
Multifamily Investment Group
URBAN MARKET INVESTMENT STRATEGY
"Re-positioning Middle Market Multifamily Investments in the emerging Urban Cores to supply the rapidly growing Millennial demographic."
Lee Commercial Properties focuses on purchasing under performing Middle Market Apartment Properties that can be re-positioned to the rapidly growing Millennial demographic. Our mission is to secure High Cash Flow Value-Add Multi-Family Investments that can be re-positioned through renovation, and increasing the building’s effective gross income.
We are targeting buildings in growth markets in Los Angeles, and Las Vegas near the urban cores and employment centers. Our target clientele is the younger millennial tenant base. These submarkets are experiencing a changing demographic population shift from a lower socioeconomic population base to a younger higher wage earning tenant base. Through gentrification we are seeing growth in both property values and rents in these submarkets.
Our objective is to grow the net worth for our investors by securing great high value investments in the rapidly changing growth markets in Los Angeles and Las Vegas. Though our built in network of Real Estate brokers, Multi-Family owners, and our innovative marketing process, we are able to source profitable off market value opportunities. Through our Acquisition and Disposition plan we are able to secure a great passive cash flow, and grow the net worth for our investors.
Investment Strategy
Step 1
Buy Mismanaged Value-Add middle market Multifamily Apartment Buildings near the Urban core, to reposition to the growing Millennial tenant base.
Step 2
Stabilize property with the top professional property management.
Step 3
Inspect and repair all major systems (Roof, Plumbing, Electrical, and HVAC).
Step 4
Bring the property up to the latest local building codes.
Step 5
Plan and Budget for Capital Improvements and Smart Tech Residential Conversion.
Step 6
Implement our Smart Tech Residential Conversion System (STRC System).
Step 7
Exit Strategy to Sell or Refinance the property within 3-5 years.
Acquisition Criteria
Property type: Middle Market Multifamily Properties
Geographic Location: Greater Los Angeles Metro, Downtown Las Vegas
Class : B or C class Value Add Apartment Buildings
Size: 4 to 50 units
Property Characteristics: Close to Employment Centers with high walkability, near shopping dining and entertainment centers.
Opportunity: Upside rent potential, with ability to convert to a smart high tech living environment to attract the high wage Millennial tech workforce.
Smart Technology Residential Conversion (STRC) System
· Secure the property with Professional Property Management Team.
· Stabilize Asset by leasing all units to current pro-forma rents.
· Inspect and Repair all major systems. (Roof, Plumbing, Electrical, HVAC)
· Bring the property up to compliance with the current local building codes.
· Create plan and budget for the Smart Technology Residential Conversion (STRC) system
· Rebrand the Property with a New Property Name
· Exterior Paint / Eco Friendly Landscaping
· Install 24 hour surveillance system
· Convert to Live/Work friendly units
· Green Lifestyle. Eco Friendly Building
· EV Plugins
· High Speed WI Fi
· Smart Locks, Smart Thermostat (Nest System), Smart Outlets
· Bike Racks
· Tank-less Water Heater
· Implement marketing plan to Re-Tenant to the high wage earning young professional demographic
· Qualify prospective tenants with comprehensive credit checks, background checks, and in person interview
· Stabilize Asset with a new tenant base adding value, and desirability to the property and location
· Maximize Rental Income and Add Value by conducting a new Market Rent study and implementing rental increases every 2 years.
· Lower costs through utilizing the latest Green Technology
· Implement RUBS (Ratio Utility Billing System)
· Add 3rd party services (Vending, Laundry)
Why are we Investing in the Urban Core Metro’s? Millennials?
Scarcity of Land: Urban Metros are fully developed and the lack of available land ensures long term sustainable growth.
Highest Rent for SF: Millennials are willing and able to spend more on rent than any other demographic. For that reason the Urban locations have most value in terms of Rent per Square Foot.
Highest Appreciation: Transitional markets and Urban cores are experiencing the fastest price growth due to the trend of the new population preferring urban lifestyles.
Fastest Rent Growth: Rents in Markets that are transitioning through Gentrification by far exceeding the other sub markets in rent growth.
Fastest Growing Renter Pool: Millennials represent the fastest growing rental demographic as they adapt to the transient nature of todays work environment. This demographic group will compose 75% of the workforce by 2025. They will be the largest rental pool until 2035
Urban Trend: The population trend is moving back to the urban core locations as they prefer the walkability, entertainment, and the Live / Work environment that the Urban lifestyle has to offer.
Investment Markets
Las Vegas, Nevada
With strong Employment growth and a healthy tourism market Las Vegas has rebounded nicely in the post recession era. The population growth increased to 56,000 residents net (2.6%), some two and a half times the national rate, according to Moody’s Economy.com. Nonetheless, annual growth rates in metro Las Vegas ran in the range of 4.0% to 5.0% and even higher than prior to the Recent Recession. Vacancy rates have ended the year at 3% and rent growth remains strong up 4.9% from 2016. The Las Vegas Market shows strong market fundamentals with great potential for growth. Ten X Commercial ranked Las Vegas the 3rd best Multifamily Market in the nation for investment.
The NFL is Coming to Las Vegas
A massive $2 Billion dollar stadium is set to host its first games in 2020. The Raiders are coming to Las Vegas!!! This served to be a huge boost to the economic impact for Las Vegas as it will attract tourism, and creating jobs. The Success of the Las Vegas Golden Knights NHL franchise and the state of the art T-Mobile arena should gain the attention of more professional sports franchises to enter the Las Vegas Market.
The Downtown Project
One a neglected part of the city, this area is emerging as a premier destination for young professionals. Tony Hsieh the founder of Zappos.com has invested $350 million in efforts to revitalize Downtown Las Vegas. This resulted in over 165 new businesses and more than 1,000 new jobs coming into the Downtown area. The newly developed Container Park hosts boutique shopping, dining and entertainment venues attracting a younger demographic who prefers the boutique entertainment experience of Downtown Las Vegas to the Las Vegas Strip.
Los Angeles, CA
Los Angeles is a coastal market where the allure of the glitz and glamour and the perfect weather is drawing the top talent from around the world. The economy experienced a record-breaking year for tourism, airport travel and port cargo in 2017 The unemployment rate is near record lows a 4.44% in Los Angeles. The Vacancy rate closed 2017 at a near all time low 3.3%. The region’s population has continued to increase as new jobs and opportunities are being created in the city, but a lack of housing and available land is becoming a bigger issue. While L.A. is adding more and denser housing, experts say it’s not keeping pace with demand, which makes Los Angeles a secure long term investment market with strong market fundamentals. Pockets of Los Angeles are emerging as Gentrification is changing the demographic landscape in many areas within Los Angeles .
Los Angeles NFL Stadium
The NFL’s will feature world-class sports and performance venues, office, retail and residential spaces, and more than 20 acres of parkland. The centerpiece of The District is LA Stadium, the future NFL home of the Los Angeles Chargers and Rams set to open in 2020. The NFL will develop a 200,000 square foot space to headquarter operations for hundreds of employees at NFL Network, NFL.com, the NFL app and NFL Red Zone. In addition to the Stadium, the project will include 900,000 sf of retail space, 800,000 sf of office space, and 2,500 sf of new residential units. The new NFL Media campus is expected to open by the summer of 2020.This is a tremendous partnership that will bring new business and jobs to Inglewood and throughout Greater Los Angeles
2028 Olympics
Games of the XXXIV Olympiad is coming to Los Angeles. Various infrastructure plans are under way concerning the cities much needed public transit.
Downtown Revitalization
The Revitalization of Downtown is attracting residents and visitors from all over the world. The area is experiencing massive growth and development of new Class A residential and retail establishments. With it’s rich culture and endless activities, Downtown Los Angeles is aiming to rival the central cores of all other metropolitan cities.
Investment Life-cycle
Partnering with Lee Commercial Properties
Lee Commercial Properties is a privately held Real Estate Investment Company specializing in Middle Market Multifamily Investments in emerging Urban Cores of Greater Los Angeles Metro and Downtown Las Vegas.
Through our unique business plan we are able to generate profits, and passive income for our investors by purchasing and repositioning Value Add Multifamily assets in the Urban cores. Through utilizing our Smart Tech Residential Conversion (STRC) System we Add Value and desirability to our investments and location by targeting and attracting the Higher Wage earning Millennial tenant base.
By partnering with Lee Commercial Properties you will be able to build wealth by generating profits, and earn cash flow passively without having to experience the burdens of property management.
We operate with complete transparency, and we are happy to provide our investors with property access and financial data upon request.
We welcome the opportunity to discuss our present investment opportunities and how we can work together to build and preserve your wealth.