Executive Summary

Beach City Capital (the “Sponsor”) is pleased to introduce a 32-unit townhome apartment project with 3,000 SF of neighborhood-serving retail/restaurant space located at 100-132 N Catalina Ave in Redondo Beach, CA (the “Project”). 

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.

We are offering the opportunity to invest up to $3,700,000 of LP equity into this Build-to-Rent 32-unit Waterfront project that just gained entitlements in Q2 of 2023. We are raising this LP equity for the current objective of commencing construction drawings and going vertical in Q1 2025. The minimum investment is $50,000 and is available for accredited investors only.

Investors can expect an 18% IRR with a 2.9x equity multiple over a 5-year hold.

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. 

High-Demand Location

South Redondo Beach Coastal is renowned for its high rental demand. Rental rates for homes range from $7,000 to $9,000 for older properties, and studios rent for over $2,900 per month. With local cap rates in the mid 3.0% range within a 3-mile radius, institutional mid-market build-to-rent multifamily projects are scarce due to high barriers to entry and entitlement hurdles near the coast. The demand for institutional product in Redondo Beach, with its idyllic coastal charm and limited supply, remains extremely high.

• Prime Coastal Location: Redondo Beach is a picturesque coastal city in Los Angeles County, California. Its prime location along the Pacific Ocean makes it a highly sought-after destination for residents and visitors alike. The allure of living by the beach, with breathtaking views and easy access to sandy shores, is a significant draw for prospective tenants.
• Desirable Lifestyle: The beach lifestyle is an integral part of Redondo Beach’s appeal. Residents can enjoy a wide range of outdoor activities, including surfing, beach volleyball, biking along the oceanfront bike path, or simply relaxing on the sandy shores. The area’s vibrant beach culture, coupled with a plethora of dining, entertainment, and shopping options, creates an attractive and dynamic environment for potential tenants.
• Strong Rental Market: Redondo Beach’s rental market is robust, with a consistent demand for housing options. The city’s allure as a coastal retreat attracts a diverse demographic, including young professionals, families, and retirees, all seeking a high-quality living experience. This consistent demand contributes to the stability of rental income, providing investors with a reliable revenue stream.
• Limited Supply: Multifamily developments in Redondo Beach are limited due to the city’s geography and zoning regulations. As a result, the supply of rental properties struggles to keep pace with the demand, leading to a competitive market environment and the potential for increased rental rates. Investors can capitalize on this scarcity by offering modern, well-designed housing options to a market hungry for such opportunities.
• Strong Economic Growth: Redondo Beach is located in the greater Los Angeles area, one of the most economically robust regions in the United States. With diverse industries and a thriving job market, the area attracts a steady influx of professionals seeking housing close to their workplaces. As the local economy continues to grow, the demand for rental properties is expected to rise accordingly.
• Excellent Transportation Links: Redondo Beach is well-connected to major highways and public transportation, allowing residents easy access to neighboring cities and key employment centers. Proximity to major transportation hubs enhances the city’s appeal and convenience, making it an attractive location for potential tenants.

Land Control to Construction and Streamlined Permit Process

Beach City Capital has been working closely with the City of Redondo Beach for the past five years to design a program that has the full support of City staff, and the project received 100% vested entitlements in Q2 2023. We have now selected the best-in-class design and engineering teams to develop construction drawings. We expect 12 months to complete plan check to obtain permit approval and start construction in Q1 2025.

Mitigated Development and Delivery Risk

Beach City Capital has worked extensively on pre-construction efforts, pricing the project every quarter and working side by side with designers for comprehensive site and cost mitigation. These efforts will continue during construction document procurement, and once in plan check, an RFP will be issued to gather 3 commercial contractors to provide hard bids and scope on the project. Once a contractor is selected, the project will be protected by a Guaranteed Maximum Price (GMP) construction contract. The project’s contractor will be peer-reviewed by a third-party construction manager for additional construction oversight and cost mitigation.

Property Management

Beach City Capital is working with Common, a modern property management company that leverages technology for flexible and convenient leasing and management. The project will comprise 32 residential units, including 24 fully furnished townhomes and eight traditional rental apartments. Four 2-bedroom units will be designated for affordable housing, supporting the community’s diverse needs. The average lease term for Common’s tenants is 12 months; however, residents have shorter-term options as well for higher rent premiums.

How to Invest

Investing in the Beach City Capital’s Redondo Beach townhome apartment project presents a unique opportunity to capitalize on the robust real estate market in an in-demand location. With its strong return profile, multiple exit options, and strategic management partnerships, this investment is poised for success. Take advantage of the benefits of real estate investing and the current financial climate by securing your stake in this exceptional project.

Investment documents and additional information are available for review – simply click “Investments” at the top of our website. This will allow you to quickly create a profile and view project information, download the Investment Memorandum, and view the Investment Webinar.

You can also visit the public Investment Page with the link here, but you won’t be able to view as much information: Click Here

Once your due diligence is complete, sign the Subscription Agreement and Joinder documents, and wire your investment into the project’s bank account. You can invest directly ($50K minimum investment) through a variety of investment vehicles, including an investment via check/wire/ACH from your individual account, an IRA, a Trust, or a 1031 exchange for $1M or more.

The investment begins accumulating a preferred return on the day of your investment. During the Development phase, you will receive quarterly reports throughout the Project’s life cycle, which will include cost-to-dates, project schedules, and progress reports. The first payment will be made at refinance, and then every quarter thereafter during the hold period, with a final payout at sale of the project.