Sonterra Bliss



 Condominium Development

Transaction Summary

In 2009, CGI acquired a bank owned broken condo property known as Sonterra Homes. The property was originally a 161-unit apartment building built in 1976 which was converted into condominiums in 2006. The developer successfully sold 62 of the units before being foreclosed on by the lender who sold the remaining 99 units to our group for $6.1MM. This purchase was structured with a $4.3MM bridge loan and $1.8MM equity.

Investment Strategy

At time of purchase, the property was 48% occupied. Through the implementation of effective management, CGI was able to quickly stabilize the property and significantly increase its net operating income. In December 2012, CGI sold the property for approximately 9.8MM. Over the three year holding period, CGI generated over $2.6MM of investor returns, which was a 144% total return and 48% per year annualized return on equity.

Transaction Details

Property Address 15425 Sherman Way, Los Angeles, CA

Total Project Cost $6,100,000

Acquisition Date 2009

Sale Price $9,800,000

Profit $3,700,000

Asset Type Broken Condominium Acquisition

Size 99 Units (Out of 161 Total)

Sale Date 2012


Posted on

February 24, 2013