Thanks to Primior’s adaptive strategy and market expertise, this project pivoted from a softening luxury sales market to a high-yield, low-maintenance coliving investment—returning all investor capital and generating exceptional ongoing returns.
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 stable NOI in place, we refinanced for $4.0M—retiring construction debt and returning all investor capital with a 12% annualized return.
3. Equity Retention & Long-Term Hold: Post-refinance, only $200k of sponsor equity remained in the deal. The property was valued at approximately $8.0M, leaving ~$4.0M of implied equity while generating strong ongoing cash flow.
The Outcome
The strategic pivot turned a potential market setback into one of our highest-yielding holds to date.
Key Results:
Investor Capital Fully Returned with 12% annualized returns.
Stabilized at $30,000/month under master lease with a proven operator.
$4.0M Refinance completed, retiring debt and preserving upside.
25% Cash-on-Cash Return on remaining $200k sponsor equity.
~$4.0M in Implied Equity based on current $8.0M valuation.
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.
