Thanks to Primior’s adaptive strategy and deep market expertise, this project successfully pivoted from a declining luxury sales market to a high-yield, low-maintenance coliving investment—fully returning investor capital while generating strong ongoing returns, and delivering exceptional IRR performance.
The Challenge
In 2015, we acquired a prime site in Venice Beach with plans to develop two luxury single-family residences. Construction completed in 2019, delivering two high-end homes with a combined total of 8 bedrooms and 8 bathrooms.
The original exit plan was a retail sale to capitalize on strong luxury demand. But as we prepared to list, the local market softened, and achieving our target price became unlikely. Rather than force a sale at a discount, we needed a strategy that would protect investor capital while creating stable income quickly.
The Approach
Primior executed a strategic repositioning of the asset to maximize revenue potential and maintain long-term flexibility.
Key Steps Taken by Primior:
1. Rapid Pivot to Coliving (2019–2020): We partnered with Haven Coliving, a leading Venice-based operator, and signed a $30,000/month master lease. This ensured predictable, institution-friendly income with minimal day-to-day management.
2. Stabilization & Refinance: With strong lease income in place, the property was refinanced for $4.0M, enabling full repayment of the $2.0M construction loan and returning investor capital.
3. Equity Retention & Long-Term Hold: The property appraised at ~$8.0M, leaving ~$4.0M in implied equity and ensuring ongoing passive income.
The Outcome
The strategic pivot turned a potential market setback into one of our highest-yielding holds to date.
Key Results:
Stabilized at $30,000/month under master lease with a proven operator.
$6.1M (includes principal + profit) Refinance Proceeds (Year 4)
~$4.0M in Implied Equity based on current $8.0M valuation.
53.9% Annualized ROI
- 33.86% Internal Rate of Return (IRR)
Conclusion: Primior’s Expertise in Action
By moving quickly to adapt to changing market conditions, Primior preserved investor capital, unlocked strong ongoing cash flow, and retained significant equity upside for the future. This case shows how our combination of market insight, operational partnerships, and disciplined finance can turn an uncertain exit into a thriving, long-term investment.
If you’re facing an underperforming asset or an unpredictable market, Primior can help you pivot with confidence—and maximize both your income and your equity.
