Market Update
The multifamily market continues to show resilience during the pandemic. As shown by the table below, multifamily returns continue to be strong and only down 1.3%-1.6% from pre-covid levels.
In fact, according to RealPage, Inc., C-class apartments continue to outperform in terms of the highest post-lease retention, meaning 61.9% of tenants opted to stay in their apartments after the expiration of their lease. For CSQ properties in Long Beach, this is closer to 90%. This translates to lower turnover costs creating higher yields for investors.
2021 Q1 Results
We’re excited to announce strong returns for all CSQ properties. As we close out Q1 and reflect on the accomplishments for the first quarter, we first look at investor returns. CSQ continues to make monthly distributions on all properties despite the challenges of Covid. CSQ properties have done exceptionally well with no vacancies and no missed rent payments. In fact the last unit which was turned over was vacant for less than 3 weeks and the new rent was 6% higher than pre-covid rent.
Investors can find the Q1 financials including Balance Sheet, Income Statement, Cash Flow Statement, and Rent Roll for their respective properties uploaded into the CSQ Investor Portal. If you have any questions, please don’t hesitate to reach out.
Property Updates
551 Daisy Ave.
This is the newest acquisition to the CSQ portfolio. The investment was fully subscribed with 100% of capital raised within 3 weeks! It consists of 8 studio units and is located less than a mile from the beach in a Historical District of Long Beach. It is still in escrow and slated to close in the beginning of May. The inspections have been completed with minimal issues and an exceptional 5 year fixed, 70% LTV loan has been approved at 3.3% interest with 3 years of Interest Only payments! This property will be another great performer for the CSQ portfolio.
Reseda Medical Arts Building
The Medical Building continues to perform great with no vacancies and no missed rent payments from the 11 tenants. Plans are currently underway to redo the parking lot, securitize the parking, and improve the main entrance with a hardscape and possibly a water feature. We will be meeting with the tenants to get their input on securitized parking. There a multitude of approaches and we’d like to have the tenants assist in the design process.
Click here to see all updates on Reseda Medical Arts Building
1470 Elm Ave
This property continues to perform well. The one tenant who fell behind two months on rent was approved for rental assistance which paid for 100% of past rent and even some future rent. There was a slab leak at this property but with our exceptional property management team, it was fixed within 24 hours with minimal disruption to the tenant.
It is this attention to details that set CSQ apart and create phenomenal performance for a cash-producing real estate asset.
1955 Locust Ave
This property continues to perform exceptionally well with no missed rent payments and no vacancies. We wish there was more to report, but the “proof is in the pudding” on this property as they say!
8455 Eton Ave
This property continues to help many women on their journey to recovery and reunification with their children. There are currently 10 women and 12 children living at the home. The indoor and outdoor play areas are definitely getting a lot of use these days!
As British philanthropist, Thomas Buxton said, “With ordinary talent and extraordinary perseverance, all things are attainable.” This is the philosophy CSQ lives by which helps fuel the returns we seek for our investors and stakeholders.