Commercial Multifamily

Our commercial multifamily approach focuses on acquiring underutilized properties in desirable areas for value-add opportunities or ground-up development. The most crucial aspect of our acquisition process is land use feasibility and zoning requirements to ensure we can build density in order to meet pro forma criteria. Our next step is to see if current land basis projects high enough profit margin to move forward with the deal. If project land basis is feasible, we shift our focus to market absorption and climate for high end multifamily buildings.

Commercial Mixed-Use

Our target single family dwellings are tear down properties in affluent and risk averse areas. We primarily focus on Redondo, Hermosa, and Manhattan Beach as our target markets. At first pass, we determine if the land value permits for tear down and full ground-up development or value-add opportunity. Our goal on commercial mixed-use developments it to maximize square footage, and create beautiful landscape for both end users and the community to enjoy. We pride ourselves on providing urbanized developments that offer both depth and character to the area. We run conservative market comparables which drive both our acquisition decisions and our financial modeling. As a conservative metric, we ensure all our for-sale and for-rent properties project high margins in case market failure at time of sale. We work with highly skilled architects and design teams to efficiently create the most useful and low-risk, high reward mixed-use developments.

Co-living

We focus on apartment buildings that lack capital improvements, sophisticated management, and landscape. Due to underutilization we convert these properties to their highest and best use by upgrading all exterior and interior units, increasing rents to market value, and creating a co-living operation. Our goal is to finance through an acquisition and construction loan mini perm for five years and then have capital event (refinance) occur after five years. For ground-up co-living developments, we focus on cash-flowing apartment buildings or vacant lots which allow for low land basis. Ground-up development allows our team to control the design, enhance the neighborhood with clean style, and create new product. Our goal is to develop a cash flow asset yielding a 10% return per year, with a low risk profile allow us to pay proper dividends to our shareholders.

Co-working

With the rise of startup culture and mobile work arenas, our team is looking to acquire old industrial buildings in prime locations to convert to creative, beachfront co-working office spaces. We primarily focus on Redondo, Hermosa, and Manhattan Beach as our target markets. Once we locate properties that allow change of use, we hope to tie up the property, shell and poor construction and manage tenant improvements. Once asset is stabilized, we create a cash-flowing, co-working business which offers memberships for members to use offices, hot desk, and other amenities. We manage in house for ten years and then sell off, generating high profit margin.

Impact Investments

Our team hopes to reposition commercial centers that have short term leases, unsophisticated landlords, and poor property management with the goal to generate a measurable impact on the community alongside a healthy financial return for investors. With our in-house design team and architectural experience, we aim to upgrade facades, retenant the center with gourmet coffee shops, trendy and upbeat retail, and food purveyors. Our goal is to cater to millennials and make our centers both useful and enjoyable for the community. We would acquire property with conventional loan, hold and stabilize, and then have a capital event occur after 5 years to pay distributions to our investors or we would hold the property in perpetuity.