Solano Vista sold in 2021. Solano Vista was CalTier Fund 1’s first investment and was able to complete a full life-cycle in just 18 months.
Often the success of an asset is determined before you purchase it. Knowing the area intimately and doing a huge amount of due diligence is what sets apart a good operator from a great one.
At the project level, Solano was able to generate an incredible 72% IRR and 3x equity multiple. This is obviously not typical for real estate investments!
However, our real estate partner, Sundance Bay, did a phenomenal job executing on Solano’s business plan, including upgrading 161 of the 352 units to a Class A finish level with vinyl faux wood flooring, hard surface countertops, new cabinetry in both the kitchens and bathrooms, brushed nickel hardware, stainless steel appliances, subway tile backsplashes, under-mount sinks, modern lighting fixtures and washer and dryers.
Before selling, the team was able to grow net revenue by 14% quarter over quarter, which was 6.3% higher than projected. This was mainly due to the rental rate increases on renewals from units coming out of renovation and significant decrease in vacancy.
Solano Vista received considerably strong interest from a diverse group of buyers and was ultimately sold to a highly experienced local operator at a delta of $25.35M from the original purchase price.