30 Unit Project and 15,000sf of Renovated Existing Retail

Site Images

Executive Summary

Beach City Capital (the “Sponsor”) is pleased to present the development of a 30 unit mixed-use development with 15,000 sf of retail located at 100-132 N Catalina in Redondo Beach, CA (the “Project”). Of the Project’s $12.8M total equity needs, the JV equity partner has the opportunity to provide 80% ($10.3M), and the Sponsor will provide the remaining 20% ($2.5M).

The Project will yield a profit of $8.3M. The JV equity partner will receive a 8% preferred return, as well as 60% of the profit split and the Sponsor will receive a 8% preferred return, as well as 40% of the profit split. The JV equity partner can expect to receive a blended average IRR of 33.3%.

The property is a 1.2 acre site with 34,500 SF of existing cash-flowing retail situated in the heart of Redondo Beach, CA. This community offers coastal living and an award-winning public school system within walking distance to several major planned major redevelopment projects. The greater South Bay benefits from a diverse marketplace as it is proximate to Los Angeles International Airport (LAX) with easy access to Downtown and West Los Angeles.

Site Context

Catalina Village will be Redondo Beach Harbor luxury living next to the ocean, located on Catalina Avenue in between Pacific Coast Highway and the Redondo Beach Waterfront. This development is located west of Pacific Coast Highway in between two of Redondo Beach’s most storied redevelopment projects,  the Waterfront (currently under entitlement review) and AES Powerplant. This superior location offers views of the ocean, palm tree lined streets, access to the Redondo Beach Pier and Harbor. Sitting as a neighbor to the planned newly developed Redondo Beach Waterfront and the AES Power Plant Redevelopment, plans  include a large “central park” and high end residential and commercial development components.

Exceptional in every way, Catalina Village has the opportunity to become the only new residential development in the area that can boast a true waterfront lifestyle. With extensive walking paths, access to the marina and strand, and adequate access to beach activities, life at Catalina Village really will be one without boundaries.

Investment Deal Points

The Investment

The Sponsor’s conservative underwriting yields project levered returns of 36.0% IRR, an equity multiple of 1.65x, margin of 20.3% and a profit of $8.3M. The entire project will offer an equity investment of up to $12,855,474. JV equity partner will receive a projected blended IRR of 33.3% and a blended ROI of 54%.

The Development

Beach City Capital will leverage industry knowledge, experience and technology to monitor, report on and manage the delivery of this project from construction to disposition. Adhering to Beach City Capital’s conservative underwriting standards, our exit assumes approximately $8.3M profit in 30 months. The Entitlement process will be 15 months (9 Months for Planning and 6 Months for Permits) and the Construction Process will be 15 Months.

Back to Projects