NB Chateau Sera, DST

2343 Scarff Street, Los Angeles, CA 90007

Total Offering Price $11,754,000

Total Investor Equity $4,254,000

  • Total Loan Amount $7,500,000
  • Loan-to-Value 63.81%
  • Minimum Investment $50,000

Chateau Sera is a three story building with 30 unique apartments with Spanish style architecture. Sera was originally built as a single family mansion and later converted to feature dozens of luxury apartments in 1989.

2343 Scarff Street, Los Angeles, CA

The property is located on Scarff street, west of USC and about 12 minutes walking distance to campus. Sera has primarily targeted graduate students who prefer living on their own.

Chateau Sera HIGHLIGHTS

Chateau Sera is a three story building with 30 unique apartments with Spanish style architecture. Sera was originally built as a single family mansion and later converted to feature dozens of luxury apartments in 1989. Both the studio and one bedroom apartments offer full kitchens, fully renovated to have a modern, contemporary look, with all new appliances and finishes. The property is located on Scarff street, west of USC and about 12 minutes walking distance to campus. Sera has primarily targeted graduate students who prefer living on their own. Scarff street is home to several historical mansions and cultural land marks.

property Profile

  • Address 2343 Scarff Street Los Angeles, CA 90007
  • Year Built 1916, renovated 2004 and 2014
  • Number of Units 30 – 17 studio, 13 1-bedroom
  • Net Rentable SF 13,058
  • Avg SF per Unit 435
  • Current Occupancy 100%

Target Strategy

Nelson Brothers believes there may be five key advantages that help distinguish the Chateau Sera DST as an unique investment opportunity. The target goal is to capitalize on these components to potentially offer a balance of high occupancy, monthly cash flow, tax efficiency and long-term growth – all while leveraging the historical stability of USC.

First, the properties are located near a major, highly renowned university in the heart of a major US city. A city known for historically strong real estate values. Second, both properties boatswain excellent track record of high occupancy with no vacancies over the last three years under NB management. Third, there is modest value-added potential as NB aims to continue raising rents by completing interior unit renovations.

Tropicana HIGHLIGHTS

1256 West 29th Street, Los Angeles, CA 90007

Tropicana is a charming three story building with 30 unique apartments. The buildings exterior was completely remodeled in 2004 and NBPRE recently completed the full interior renovations. Both Studio and one bedroom units offer full size kitchens with new cabinetry, appliances, flooring, countertops and paint. This building is located on the corner of 29th Street and Orchard, just one block north of campus.

property Profile

  • Address 1256 West 29th Street Los Angeles, CA 90007
  • Year Built 1927, Exterior Remodel 2004, Interior Renovation: 2013/14
  • Number of Units 30 – 8 studio, 22 1-bedroom
  • Net Rentable SF 13,368
  • Avg SF per Unit 445
  • Current Occupancy 100%

 

ABOUT University of Southern California

  • Location: Los Angeles, CA
  • Founded: 1880
  • Endowment: $4 billion
  • Total Enrollment: 39,958
  • Conference Affiliation: Pac-12
  • Campus size: 301 acres

USC Releases Admission Statistics for Fall 2014

  • The vast majority of admitted freshmen rank in the top 10% of their high school’s graduating class
  • 75% have standardized test scores at or above the 95th percentile, and their average un-weighted high school GPA is 3.82
  • Overall, 44% of admitted students are from California, 39% come from the other 49 states and the remaining 17% representing 80 foreign countries

Potential Risk Factors to Consider

  • Real estate securities are speculative and entail a high degree of risk.
  • Suitable only for investors who have adequate means of providing for current needs and personal contingencies, can bear the economic risk of the investment, and have no need for liquidity. Investment only available to persons who are “accredited investors’ as defined in Rule 501(a) of Regulation D under the Securities Act of1933.
  • Lack of Diversification, investment in a single asset creates higher risk and may expose invested principal
  • There is no assurance the property can generate income from investments or assurance of property appreciation or cash distributions.
  • A lessee may have limited financial resources and no significant net worth.
  • Loan default can result in a property foreclosure
  • There is no guarantee that the exit strategy will occur.
  • Investments are subject to a variety of fees and commissions, including but not limited to carried interest, management fees, acquisition fee and disposition fees.

ABOUT Nelson Brothers

16B Journey | Aliso Viejo, CA 92656 (800) 580-1031

Current Management Portfolio At-A-Glance:

Founded in 2007, Nelson Brothers specializes in what the firm considers to be well-positioned student housing properties. Headquartered in Orange County, CA, Nelson Brothers manages over $500 million in real estate with more than 100 employees.