We’ve invested $11.5 million in The George, a new 340-unit luxury apartment community located in the Platinum Triangle neighborhood of Anaheim, California, about 30 miles southeast of downtown LA. Best known as the home of Angel Stadium, the neighborhood is undergoing major redevelopment plans to replace older industrial developments with a mix of residential, retail, restaurant, and office spaces.
Built in 2017, the complex boasts modern amenities including a rooftop terrace with a pool and spa, a beer garden, and an outdoor theater. At the time of our acquisition, the property was roughly 93% occupied.
Business plan
The sponsor, Lyon Living, plans to hold and manage the property for roughly 11 years before seeking exit opportunities. Our investment is structured like debt, where they are obligated to pay us a fixed rate of return (roughly 8.9% annually) over the life of the investment before they are able to earn a return for themselves.
Why we invested
- Attractive margin of safety: The property was recently appraised for $153 million. The property value would have to fall by roughly 30% before the principal of our investment was threatened.
- Experienced national sponsor: Based out of nearby Newport Beach, Lyon Living has over 50 years of experience in the acquisition, management, renovation, and development of real estate. Their portfolio is currently valued at over $2 billion in real estate, encompassing approximately 7,000 apartments at 33 properties across California, Colorado, Nevada, Georgia, and Florida.
- High-quality asset: Built in 2017, The George offers modern floor plans, stainless steel appliances, and designer fixtures in units, while boasting luxurious community amenities including a rooftop terrace with a pool and spa, a beer garden, and an outdoor theater.
