Ladera Apartments
Inglewood, CA
Total Units
68
Hold Period
40 Months
Acquisition Price
$12,700,000
Sale Price
$17,145,000
Annual Rate of Return
26.13%
Equity Multiple
2.25x
Property Photos
Investment Overview: Ladera Apartments, Inglewood, CA
Acquisition & Strategy
Ladera Apartments, a 68-unit multifamily property located in Inglewood, CA, was acquired off-market on December 1, 2018, for $12,700,000. The investment was strategically positioned in an area experiencing significant economic growth and revitalization, with major developments such as SoFi Stadium, the LA Clippers’ Intuit Dome, and Metro Rail expansion fueling demand.
The business plan focused on operational efficiencies and rental growth, taking advantage of the strong employment base and increasing demand for high-quality rentals in Inglewood. The asset’s value-add potential stemmed from under-market rents and the ability to implement modest upgrades to improve both unit interiors and common areas while maintaining affordability for tenants.
Value Creation & Market Dynamics
Ladera Apartments was situated in one of Los Angeles’ fastest-growing submarkets, with Inglewood emerging as a key economic and entertainment hub. The property benefitted from:
- Proximity to major developments, including SoFi Stadium, the Hollywood Park project, and LAX modernization.
- High demand for rental housing, driven by job growth, transportation improvements, and corporate relocations.
- Limited new multifamily supply, increasing competition for well-located assets.
- A transitioning neighborhood, where property values and rental rates were rising as the area improved from C+ to B+ status
By optimizing rents, improving operational efficiencies, and making selective property upgrades, we maximized cash flow and positioned the asset for an attractive exit
Market Analysis
Inglewood has transformed into a premier investment hotspot, benefiting from historic public and private sector investments. With a diverse workforce, strong job growth, and increasing property values, it has become one of California’s most resilient rental markets. Infrastructure projects, such as the Crenshaw/LAX Metro Line, further enhance connectivity and long-term desirability.
Financial Performance & Exit
Ladera Apartments was held for 40 months before being sold on August 15, 2022, for $17,145,000, creating $4,445,000 in additional value and delivering strong investor returns.
Key Investment Metrics
- Acquisition Price: $12,700,000
- Sale Price: $17,145,000
- Value Created: $4,445,000
- Annualized Return (ARR): 26.13%
- Equity Multiple: 2.25x
Conclusion
Ladera Apartments exemplifies a successful value-add investment in a high-growth submarket. By acquiring the asset in an appreciating market, optimizing operations, and leveraging Inglewood’s ongoing economic expansion, we generated strong risk-adjusted returns while maintaining affordability for residents.