SOLD ‘Q2 2024
High Net Coastal Property Management w/Growth Potential
Santa Cruz, CA (Santa Cruz County)
Seller financing available if the price and deal structure is right.
Asking Price: $1,400,000
Cash Flow $425,000
Gross Revenue: $825,000
EBITDA: N/A
FF&E: 0
Inventory: 0
Employees: 4
Business Description:
Established Property Management Company.
Don’t miss this unique opportunity to own a turn-key property management company! Established in 2012, with 12 years under its belt, the Company has succeeded in building a solid and steady portfolio of over 300 doors across over 150 properties. The Company’s diverse portfolio includes small apartment buildings, unique multi-family properties, single-family homes, and condominiums. The Company does not engage in short-term rentals, vacation rentals, or HOA management. The fees charged range from 6 to 8 percent.
The Company has averaged 30% growth year over year since inception, with the greatest growth of approximately a 37% increase in doors and a 101% increase in revenue from FYE 2019 to FYE 2023. Without advertising.
However, the Principals are selective about all those the Company works with; from like-minded property owners who understand the value of proactive property maintenance and positive tenant relationships, to vendors and staff, resulting in a slightly reduced rate of growth.
A solid team of three DRE licensed agents who have made property management their career, as well as one administrative assistant, round out the team.
The area is known for its solid, stable rental market, which historically remains steady and strong, even when other nearby areas are shaky.
Prospective buyers are required to have an active CA DRE Broker’s License. It’s highly recommended that prospective buyers also own an existing property management company and/or have extensive experience working in the CA property management industry.
Don’t miss out on the chance to acquire a thriving property management company with ongoing potential for growth. Take the next step in your real estate journey and become the proud owner of this diverse and well-managed portfolio.
NDA is required {SUBMIT BELOW} to secure a comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
Detailed Information:
Facilities:
Operations are based in a centrally located building with 1,140 square feet of space under a lease that expires at the end of January 2028. Rent is $1,425 (year 1) to $1,572 (year 5) – triple on a Net Lease. The average is approximately $1,800-1,900/month.
Competition:
Rapid growth over the last year proves that communication is indeed key. That other companies in the area fail to respond to calls and emails is why they do so well.
Growth & Expansion:
Buyers who want to propel growth beyond the 20+ percent obtained annually can launch an advertising campaign, offer incentives, and attend industry mixers to get to know other local real estate professionals. The principals have purposely been particular about the quality of clients they have worked with. With more resources (or staff) a Seller may reduce the number of inquiries declined (without lowering standards) or consider expanding services to other communities in the County.
Support & Training:
To ensure a smooth transition and ongoing success the Sellers will work with a buyer directly as needed for 4 weeks and potentially further in an advisory role as negotiated.
Reason for Selling:
The partners see longevity and growth as being best under a new owner or larger organization with more resources.
Financing:
TBD if the deal structure and terms are acceptable.
SOLD-High Net Coastal Property Management w/Growth Potential
