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Location: 1645 & 1649 Capalina Road, San Marcos, CA
Size:
Date Purchased: August, 2003
Purchase Price: $980,000
Date Sold: September, 2005
Sales Price: $2,810,000
Strategy: With San Marcos’ rapidly expanding service industry and majority residents with white-collar occupations, Fenway Properties recognized an incredible opportunity to acquire a dilapidated industrial building that was 75% vacant and had been sitting on the market for more than 9 months and divide the space into 8 highly-marketable condominium office units.
Challenge: Although the building’s structure was sound, neglect had left the building in a state of major disrepair. Not only would the space need a complete interior renovation to divide the space appropriately, the exterior would also need a major upgrade in order to attract tenants that would best use the new smaller condominium units. Additionally, working with the city on the entitlement process for this project was another major challenge.
Solution: The extent of the renovation for this property included new architectural elements for both the interior and exterior of the building. New glass and doors were installed. The renovation required new stucco and a new roof. New heating and air-conditioning units were added and new landscaping completed the transformation.
They key to success with this project was speed and agility. Fenway Properties filed a condominium map while the extensive renovation was being completed. Relationships with city officials helped in the successful navigation of the challenging entitlement process and escrow closed for the sale of this property the day the condominium map was approved.
Results: The property was sold for $2,810,000 in September 2005 for a profit of 106% over 25 months.
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