StarPoint Buys 370-Unit Complex

StarPoint plans $2 million in renovations at Le Club, which it has acquired with KeyBank as an equity partner. The property is a garden-style complex of 24 buildings on a 16-acre site at 51 Majestic Court. Paul Daneshrad, CEO of StarPoint, tells GlobeSt.com that the company sees a great deal of upside potential given the Moorpark location and demographics of Le Club. The complex, which was 96% occupied at the time of the sale, is situated in an affluent area where the average price of a new home is more than $994,000 and average household income exceeds $99,000. According to Daneshrad, StarPoint's renovation will target upscale renters through a remodeling of all the common areas; expansion of the fitness center to 1,000 sf; addition of a business center; and a complete upgrade of all the unit interiors. The availability of low-cost debt, coupled with StarPoint's strong relationship with ARCS and Fannie Mae, allowed the firm to secure a 10-year loan of nearly $40.7 million at a fixed 4.94%, he notes.

Built in 1987, Le Club offers two-bedroom and three-bedroom apartments. With the renovations, each of the 370 units will feature an enclosed garage, washer-dryer, central air conditioning and heating, dishwasher, garbage disposal, private patio or balcony, and a private bath in the master suites. The units average in size from 820 sf to 1,100 sf and rent for $1,325 and $1,700 respectively. Its amenities include four swimming pools, four spas and hot tubs, lighted tennis and basketball courts, a variety of picnic tables with barbecue grills, and a fitness center.

StarPoint Properties and the seller were both represented by Stan Jones and John Walsh of Marcus & Millichap.

StarPoint specializes in the acquisition, development and repositioning of multifamily projects in regional markets throughout the nation. The firm, which has been involved in the multifamily market since 1994, currently operates a $250 million-portfolio that includes more than 3,000 units.