Town Home

Our townhome development approach focuses on acquiring underutilized properties in desirable areas for 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 townhomes. Our key criteria is for townhomes to have ocean or city views and close proximity to retail centers. Our townhome projects are designed by the best architects in town and utilize modernized design tools. We primarily look to develop either detached or attached townhomes in up-and-coming markets with low risk and high reward.

Single Family Dwellings

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 single family homes it to maximize square footage, and create beautiful landscape for both end users and the community to enjoy. We pride ourselves on providing contemporary, plantation, or spanish-style homes 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 properties project high rental margins in case market failure at time of sale.

Residential Apartments

We focus on residential apartments 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 managing property in-house. 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 residential apartments we seek single family homes on multi-use zone lots 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.

Retail Strip Center Repositioning

Our team hopes to reposition retail centers that have short term leases, unsophisticated landlords, and poor property management. 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.

Creative Office Repositioning

With the rise of startup culture and mobile work arenas, our team is looking to acquire old industrial buildings in a prime location to convert to creative office space. 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 manage in house for five years and then sell off generating high profit margin.