The Deland Apartments
San Jose, CA - 6 units

$1,550,000
acquired
(MAY 2020)

83% REHABBED
5 OF THE 6 UNITS

40.02% IRR
PROJECTED IRR

During the unprecedented and challenging Covid-19 times, the strength of the Flite reputation has allowed us to acquire our first property in the San Jose market. The property is a 6 unit multifamily consisting of all 1 bedroom units and with it being self-managed by the previous owner, the in-place rents were averaging $1,281, considerably below market. The asset was acquired using private debt and escrow closed on May of 2020.

We immediately collaborated with our property management team and strategized on the best process to engage the tenants to implement the cash for keys strategy. Through careful consideration and by working with the City of San Jose Housing Authority, we came up with an amount that seemed fair to both parties.

Amazingly, 5 of the 6 units accepted the offer and vacated the units in about 30 days of being presented the offer. Flite and our management team validated the leases at the tenant’s new rental unit and the “cash” was directly paid to the management of the new property. This ensured that the funds were being allocated appropriately and that the former tenants had housing in a comparable or better unit out in the market.

As soon as the units became available, Flite immediately mobilized our construction team and began the rehab process of these units. Our plan is to improve these units considerably from its former condition and provide highly sought after rehabbed units for the rental population at market rents.