“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
William Arthur Ward
Life will be different Post-COVID. Our team is positioned well with the track record and relationships to source high quality risk adjusted real estate investments.
Naturally Occurring Affordable Housing
Given the lack of affordability in California coastal communities, we are focused on developing ground-up micro-unit apartment housing located in walkable neighborhoods in both urban and suburban environments. This housing is affordable by design where the neighborhood and location are the amenities. We then use a “needs-based” approach allowing for lower than average rent level for that particular community.
With a strong construction team and a background in ground up development, our team thrives in value-add investments. Our typical strategy is to invest where others are not. This is hard to do in a saturated value-add multi-family environment. Therefore, we target growth markets following the migration out of California (particularly Silicon Valley). We prefer communities which range between 40 to 150 units and vintage 1960 to 1990’s. This is a longer-term strategy where we aim to build wealth through rent growth, depreciation and principal paydown. Target investment period is 5-10 years as which point we will 1031 exchange and roll the portfolio.
There is no doubt that our economy is changing, and we expect to see a significant reduction in brick and mortar retail. Hospitality and office are also likely to experience greater vacancy due to COVID-19. Though our firm had been focused on the adaptive reuse niche well before COVID-19, we expect an increase in repositioning opportunities going forward. We focus on assets with “good bones” in need of capital expenditure while also looking to satisfy current market demand.
Covered Land Plays
Since our inception, our firm has specialized in unlocking value through in-depth code review and analysis. As municipalities transform, often the current use isn’t the highest and best use for that particular piece of land. Through covered land plays our team acquires commercial assets at capitalization rate valuations exhibiting exceptional upside potential from redevelopment. Downside protection is achieved via the existing income stream and current land use. This strategy involves vision, forward thinking and knowledge of long-term planning efforts within a particular municipality.
Mana Investments specializes unlocking asset value through extensive code analysis, thoughtful design and a skilled development team. We are actively pursuing investments that fall within the following parameters:
Product Type: Mixed Use, Multi-family, Build-to-Suit, For Sale Housing, Retail and Office with Repositioning
Location: San Diego & Bay Area for Ground Up; Western United States for Value Add
Price Range: $2mm-$70mm
Risk Profile: Value-Add, Reposition, Entitlement
Financing: Cash or Leverage
Vintage: 1960 – 1990’s
Mixed Use, Multi-family, Build-to-Suit, For Sale Housing, Retail and Office with Repositioning
San Diego & Bay Area for Ground Up; Western United States for Value Add
Value-Add, Reposition, Entitlement
Cash or Leverage
1960 – 1990’s