Virtú Investments Acquires Laurel Grove in Salinas, CA
The Evergreen Fund purchased Laurel Grove in Salinas, CA. Virtú has a comprehensive understanding of property operations, and the Salinas market through prior ownership and prior management for third-party owner. Virtú’s business plan for Laurel Grove calls for finishing unit interiors and preparing the asset for long term ownership and cash flow.
Restrictive development policies in Monterey County and virtually zero projected new units in the Salinas pipeline bode favorably for the near-term income fundamentals of Laurel Grove. As a late-cycle market, Salinas was delayed in experiencing the rapid rent growth that has been characteristic of the urban centers of the greater Bay Area. Salinas continues to see positive rent growth and declining vacancy rates as the submarket continues to strengthen. Annual rent growth has exceeded 5% throughout the region over the last four years, and vacancy rates have been below 5% since early 2013.