A frenzy of activity in the final days of 2021 resulted in the firm’s largest acquisition to date and a disposition that produced an IRR of 56.95%
New Standard Equities (NSE), a Los Angeles-based, full-service multifamily real estate investment and management firm, closed three major transactions in the final week of 2021 by completing the disposition of Seaglass Village in Bremerton, WA and acquiring two properties, The Benson in Upland, CA, and Redwood Valley in Castro Valley, CA. These transactions totaled over $157 million for 524 units across three major markets.
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After a successful execution of the firm’s business plan over the course of almost six years, Seaglass Village was sold to a local buyer on December 30th, 2021 for $35.5 million. NSE originally purchased the property in 2016 for $13 million. The final project level IRR totaled 56.95%, and a project level multiple of 3.92x. These numbers are record-setting benchmarks for New Standard Equities. “I’m proud of our entire team, from our acquisitions division to our property management professionals, for being able to navigate these challenging times with fortitude and astute dedication to our investors,” said NSE Founder & CEO, Edward Ring.
Simultaneously, the company also closed on two garden-style multifamily properties with institutional, joint venture equity partners in the final week of the year. On December 29th, New Standard Equities purchased The Benson, a 234-unit apartment community in Upland, CA. This marks the largest acquisition ever for the firm at a purchase price of $80.75 million. The community is now one of the largest assets owned by NSE, and it joins Elevate at Towngate as one of the company’s holdings in the Inland Empire.
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“The region has become an increasingly attractive destination for renters over the past decade due to its strategic location, a plenitude of job opportunities, and the opportunity to provide more space for less money over the more expensive neighboring Los Angeles County,” said Timothy Walters, NSE’s Chief Investment Officer. “A continued shortage of new housing in the area lends well to our business strategy of repositioning existing properties and marketing them to discerning potential residents seeking a superior product.”
To close out the year, the firm purchased a 108-unit apartment community in Castro Valley, CA, for a total of $41 million on December 30th. Originally known as “Redwood Valley,” NSE has already rebranded the asset as “The Brook on Center,” and the firm expects to fully reposition the property to complement its five other holdings in the Bay Area with planned capital expenditures of roughly $3.2 million. NSE’s superior knowledge of the market and the intricacies of operating in the area was key in raising equity from its institutional partners.
These deals are located in three of the major markets in which NSE operates: the Pacific Northwest, Southern California, and the Bay Area. By capitalizing on its team’s familiarity with the markets, NSE is able to provide superior living to residents while delivering favorable returns to investors. The firm understands the high potential for growth in these MSA’s and is continuing efforts to expand in all three as well as entering the Portland and Denver markets later this year.
This frenzy of activity in an abbreviated amount of time speaks to the tenacity and diligence of a team that prioritizes capitalizing on available opportunities. As New Standard Equities enters 2022 with a growing portfolio and record highs for both project-level IRR and project equity multiple, the team is prepared to continue answering both the market’s demands for superior product in tandem with providing outstanding returns to its investors.
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