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.

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.