Investment Highlights
- VALUE-ADD OPPORTUNITY: 248 of 255 units (97%) remain in classic condition. Investors will have the opportunity to renovate units to capture roughly 15-16% upside in rental income.
- EXCELLENT UNIT MIX: Sand Canyon Ranch features all 2-bedrooms (67% of unit mix) and 3-bedrooms (33% of unit mix) and 947 square foot average unit size.
- STRONG AREA DEMOGRAPHICS: The Santa Clarita Valley boasts some of the strongest demographics and demand drivers in Southern California ($152K Avg. HHI, 61% earning $100K+, 49% college educated, 2.5% projected population growth) which put it either on par with or superior to some of the better known institutional investment markets such as Santa Monica, Pasadena, Rancho Cucamonga, Chula Vista, Irvine, and Thousand Oaks.
- WELFARE TAX ABATEMENT OPPORTUNITY: 100% of the in-place rents and 86% of the households that reported incomes fall below the 80% AMI limits. Accordingly, Sand Canyon Ranch represents an opportunity to apply for a welfare exemption to offset ad valorem property taxes.
- STRONG RENT GROWTH & HIGH OCCUPANCIES: Over the next four years, Santa Clarita Valley is projected to achieve 96.5% average occupancy and the highest rent growth (4.53% YoY) among major Los Angeles submarkets, thus outperforming areas like the South Bay, Pasadena, Sherman Oaks, Santa Monica, and Hollywood.
- ONE OF THE BEST SUBURBAN LOCATIONS: Santa Clarita is consistently recognized for its exceptional safety profile, family-oriented demographics, and being the most business-friendly city in LA County.
- ADJACENT TO A PREMIER, NEWLY BUILT MASTER PLANNED COMMUNITY: The Property is adjacent to the 87-Acre Sand Canyon Plaza master planned community which, upon full build out in 2027, is expected to fully transform the lifestyle experience in the immediate area. The project includes 580 homes, 140 senior living beds, 50K SF of retail, and 31 acres of open space with notable developers such as Resmark, Intracorp, Greystar, Lennar, and Link Development.
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