Turnstone performs the majority of its purchase and renovation projects in Los Angeles County in an area we loosely refer to as the “The Triangle of Opportunity and Renewal”. The Triangle is defined by the 405 Freeway on the west, the 605 Freeway on the east and the 10 Freeway to the north. While Turnstone does not limit its investments to this area, the vast majority of our investing occurs within these boundaries.
Why “The Triangle”?
- Sales Activity: The highest activity in housing sales occurs in the under $500,000 range which is almost exclusively within the Triangle. In fact, in all of 2009, 65% of residential sales occurred from $300,000 and under.
- Turnstone Eligibility Criteria: Turnstone has established a strict eligibility criterion for the properties it selects for purchase. First, the property must be purchased at a price sufficiently below current market value so that it may be rehabbed and sold for a profit at current market prices. Second, each property must be purchased at a price that allows it to be renovated and rented at a CAP rate of 8% or higher. Since the highest number of foreclosed properties exists in the areas defined by the Triangle, this becomes the premier target market for investment.
- Fulfillment of our “core principal”: By investing in the Triangle, Turnstone is able to adhere to its core principal of renewal and re-investment in the very communities hit the hardest by the economic turndown and recession.
