Cohen Rojas

Multi-Family Investments

 

Since the beginning of 2011, Cohen Rojas Capital Partners has acquired over 600 multifamily units across Northern California. Most of the portfolio is in Berkeley and the neighborhoods in and around downtown Oakland. In general, properties are held in a single-entity LLC that is managed by Cohen Rojas Capital Partners.

 

Select deals are outlined below:

 

1525 Spruce Street, Berkeley, CA

 1525 Spruce Street, a 24-unit apartment building in the prime Gourmet Ghetto neighborhood of Berkeley, CA was acquired in November 2013. The property had been under managed for years and was nearly half vacant in a hot rental market. The property is 2.5 blocks to the University of California, Berkeley and steps to some of the best restaurants the town and entire Bay Area has to offer. 

 

Through buyout agreements and natural turnover we were able to turnover another 11 apartments and used the opportunity to completely upgrade the building. We completed an extensive seismic retrofit, repaired damaged stucco, replaced all windows, upgraded the plumbing, electrical and heating systems, and remodeled all apartments to modern standards and finishes.  We leased up all 22 vacancies in 2 months, achieving rents of $1,795-$2,195 per month.

 

Harrison Street Apartments - 1425 Harrison Street, Oakland, CA

 In December of 2014, Cohen Rojas closed on The Harrison Street Apartments, a 61-unit property in the Lakeside neighborhood of Oakland, CA. The building was owned by a partnership that we purchased a building from in 2013, and we were able to obtain this property off-market based on our track record with the sellers. The building had several tenants paying rents that are well below market and extensive deferred maintenance. We refreshed the interior common areas with new paint, carpet and increased lighting and created a usable park-like setting in the courtyard that was previously just used for trash. Throughout our 2-year hold we increased gross rents by 26%, turning over and remodeling approximately 35% of the apartments.

 

We closed on the sale of this investment in December of 2016.

 

Heron Village - Meridian, ID

 Our first acquisition outside of California, Heron Village, is a 108 unit apartment complex in Meridian, Idaho, just outside of Boise. Completed in 2015, the property had been held by the original developer. We saw tremendous upside on the in place rent roll and since closing in August of 2017 we have achieved rents that are more than 20% higher than the previous owner. We closed the property with a bridge loan and plan to refinance into long term HUD financing after increasing revenue during our first year of ownership.

 


Entro @ Midtown - 1325 18th Street, Sacramento, CA

1325 18th Street, Sacramento, CAIn April of 2014, we acquired 1325 18th St., a 25-unit apartment building in the Midtown neighborhood of Sacramento. While the building was falling apart, we saw an opportunity to re-build it from the ground up and cater to professional tenants. Midtown is the only urban walkable neighborhood of Sacramento, situated right next to the downtown office buildings and the California State Capitol. Young professionals in Midtown can walk the tree-lined streets and frequent the hottest restaurants, bars and shopping in Sacramento.

 

We gave the exterior of the property a facelift and took the interior to the studs. The completed apartments feature open floor plans with hardwood floors, modern kitchens, in-unit washers and dryers and central heat and air conditioning. We achieved rents of more than double what the previous owner was getting and well above our pro forma on acquisition.

 

We closed on the sale of the building in August of 2016 and were written up in the Sacramento Business Journal for achieving record pricing.

 

Laurel Park Apartments - Boise, ID

 The Laurel Park Apartments, a 128-unit complex in the North End neighborhood of Boise was acquired in September of 2017. This deal is similar to others we have acquired in California in that it is a value-add deal in a great location in close proximity to the urban core of Boise, walkable to the Capitol, downtown and Boise State University. The complex was built in 1971 and has not been touched since initial construction beyond basic maintenance. We plan to modernize the apartments and increase rents to market to create value for investors.


 

2nd Avenue Apartments – 200-220 East 15th St, Oakland, CA

 The 2nd Avenue Apartments, a 48-unit apartment complex in the Lake Merritt neighborhood of Oakland was purchased by Cohen Rojas Capital Partners in July of 2013. The property had been family owned and operated for the past 40 years and had 35% upside in existing rents along with higher than average operating costs.

 

We have renovated apartments as they have naturally turned over and grew rents by 11% within our first year of ownership. This allowed us to re-finance and return 46% of the initial equity to our investors.

 

This area along Lake Merritt is a very walkable neighborhood of Oakland that is seeing a noticeable resurgence of interest and activity. This property is well positioned to benefit from external factors in the market due to its close proximity to Lake Merritt (2 blocks), nearby parks, close to many recreational activities, various nearby shopping districts, walking distance to BART and a short drive away from the 880 and 580 freeways. Redevelopment in nearby streets such as the Lakeside Senior Apartments and the newly renovated "Merritt On 3rd" building will also benefit the neighborhood long-term.

 

Continental Arms Apartments – 107 King Rd, Roseville, CA

 Continental Arms Apartments, a 39-unit complex in the desirable suburb of Roseville was acquired in April of 2013. The property had been owned and operated by the same family who built it nearly 50 years ago. While the property was in great physical condition, the family had not optimized the operations and had many tenants at rents well below market. The property has a picnic area, nearly 2 parking spaces per unit, RV parking areas for additional income, and various open spaces. Additionally, all apartments are larger than 700 square feet making the community attractive to families.

 

We acquired the property with a bridge loan from JP Morgan Chase and re-financed into a permanent loan in January 2014 after growing gross rents by 15%. Furthermore, the previous owner had master-metered the electrical and gas utilities. In 2015, we independently metered both of these utilities. With the tenants now responsible for these expenses, our operational expenses declined significantly.

 

16th Street Apartments – 646 16th St, Oakland, CA

 Cohen Rojas Capital Partners acquired 646 16th Street in an off-market transaction in March of 2013. The building consists of 24 apartments in desirable Uptown Oakland, a walkable neighborhood bustling with hip bars, places to hear music and interesting restaurants. The property had significant deferred maintenance, a few troubled tenants, and under-market rents.

 

Within a year, we were able to turnover more than half of the building and grow gross rents by 33%. As we remodeled these apartments and leased them out to qualified tenants, the profile of the building changed. We re-financed the building in late 2014 and were able to return 57% of the initial equity to our investors.

 

We closed on the sale of the building in June of 2016

 

Wind Creek Apartments – 2407 Connie Drive, Sacramento, CA

 The Wind Creek Apartments, a 49-unit complex in the Arden Arcade submarket of Sacramento was acquired in August of 2012. The property is located in a central infill area of town, near employment, shopping and the I-80 interstate. Built in 1986, the property consists of 35 large 2-bedrooms units and 14 1-bedroom units, with central heat and air that will attract families to the property, representing stable, long-term tenants.

 

As the property was in a distressed state at acquisition, we couldn’t obtain a traditional loan and financed the purchase with a bridge loan. Over the first 4 months of the hold, we completed significant capital improvements to the property such as re-siding and re-roofing the buildings, replacing all windows, upgrading the interiors of the units, improving the landscaping, and enhancing security on the property. We evicted non-paying tenants and had over 95% occupancy in 2013. This allowed us to re-finance into a traditional commercial mortgage and return approximately 50% of the initial equity to investors.

 

We closed on the sale of Wind Creek in July of 2015.

 

Fountain Crest Apartments – 2719 Mills Park Dr., Rancho Cordova, CA

 The Fountain Crest Apartments, a 72-unit complex in the Sacramento suburb of Rancho Cordova was acquired in August of 2011 from JP Morgan Chase. The property is located in a central infill area, near light-rail public transportation, employment and shopping.

 

During the foreclosure process in which Chase took ownership, the property slipped to 64% occupancy, with a few tenants delinquent on their rent. After acquisition and during the first three months of ownership, we completed cosmetic repairs on all vacant apartments, made repairs on the roofs and gutters, painted the exterior of all 19 buildings, and enhanced the landscaping throughout. Potential tenants appreciated the repairs and by December of 2011, the complex was fully occupied.

 

We closed on the sale of Fountain Crest in November of 2014.