Cumberland Holdings announced the acquisition of the 32 unit Enclave Apartments in Walnut Creek, California on January 31, 2012.
Enclave is located in the heart of Walnut Creek, one of the East Bay’s primary hubs for culture and commerce. The area is known locally for combining a suburban atmosphere with a bustling downtown, making Walnut Creek an idyllic place to live and work.
The purchase was capitalized with private equity and a mortgage of $3,000,000 arranged by HFF and Capital Source.
The property, formerly known as Evergreen Apartments, was renamed Enclave Apartments on N Main Street with a comprehensive re-branding strategy focused on internet marketing. Enhancements included: new landscaping, exterior building upgrades, signage, and unit renovations.
In April 2014, Enclave Apartments was sold for $7.3M. Enclave's strong location and strategic value add plan generated significant rent growth from $1,075/unit to $1,595/unit. Over the 26 month ownership period, Cumberland's investors received a 170% return resulting in a 39% IRR.