For this ground up speculative luxury 3-unit townhome development, we partnered once again with Gary Lane of Lane Design Build.  We acquired two adjacent homes via separate off-market transactions on July 31, 2015, for $1,835,000, with a combined lot square footage of 5,532 square feet.  The size of the combined lot allowed us to develop three detached townhomes totaling approximately 7,095 square feet, with open reverse floor plans.  These modern coastal plantation townhomes featured 3 bedrooms and 4 bathrooms, with surround views from the 3rd story as well as a rooftop deck with panoramic and ocean views.  The Property is approximately 4 blocks from the beach and within easy walking distance to Downtown Hermosa Beach and local parks. 

 

All three units sold by early 2019 for $2,215,000 – $2,525,000, or a cumulative value of $6,995,000 and generated a total return for our investors of over 50%.  

For our next ground up speculative luxury home development, we have partnered again with Gary Lane of Lane Design Build.  The lot that we are redeveloping is on the much sought after “Avenues” in South Redondo Beach.  

This property was acquired in an off-market transaction on May 6, 2015 for $990,000 and consisted of a 1,592 square foot house built in 1951, on an over-sized 7,599 square foot lot.  We developed a two story, 5 bedroom and 4 bathroom 4,358 square foot coastal plantation single-family residence.  

This property was sold on November 23, 2016 for $2,775,000, resulting in a total return to our investors of 28%.

For this ground up speculative luxury home development, we have partnered with Gary Lane of Lane Design Build with 30 years of single family residential development experience primarily focused on the high-end South Bay beach communities of Manhattan Beach, Hermosa Beach & South Redondo Beach.  The lot which we are redeveloping is approximately 7 blocks from the beach and is located on one of the most prized tree-lined streets in the highly desirable beach community of South Redondo Beach

The property was acquired in an off-market transaction on December 23, 2014 for $1,003,000 and consisted of a 1,174 square foot house built in 1948, on a 6,278 square foot lot.  We developed a two story, 5 bedroom and 6 bathroom 4,055 square foot coastal plantation single-family residence, with surround views from the second story and a spacious roof-top deck with stunning panoramic ocean views. 

This property was sold on June 8, 2016 for $2,632,500, resulting in a total return to our investors of  30%.

This ground up development project is an approximately 15,000 square foot retail development on a major signalized intersection in the city of Norwalk.  It was acquired in March 2014 and has close proximity to the I-605, I-105 and I-5 freeways.  At the time of acquisition it consisted of a 4,387 square foot vacant Norm’s restaurant on a 69,260 square foot parcel of land.  Demolition was completed during the design and entitlement process.  Preliminary plans were to construct three pads of various sizes, to provide all tenants with maximum exposure.  These plans were well received within the marketplace, as the project was 100% pre-leased prior to the commencement of construction.  We have executed three leases, two of which are ground leases with national credit tenants.  As a result of negotiating two long term ground leases, we were not only able to reduce the equity needed to complete this development, but were able to sell it at a lower cap rate. 

This property sold on August 8, 2017 for $8,675,000, at a 4.6% cap rate.  The total profit to our investors was $2,273,500. 

The Subject property was acquired at a probate sale in October 2012 as vacant land.  The Property’s zoning was R-2 and it was designed, entitled and developed with two townhome style 4-bedroom, 2-bath rental units, containing approximately 1,550 square feet each.   

Just over one year after purchasing the land, construction was complete and the property was fully leased.  At that time, 4.55% fixed rate permanent financing was secured, returning 100% of our partners’ equity.  The 2-unit investment property remains fully occupied and produces positive cash flow after debt service for our partners, even after the return of their equity.  

 

This 10-unit property, which consists of two mirrored 5-unit buildings, was purchased in April of 2012.  It is located in the coastal city of Manhattan Beach, which contains some of the most sought after demographics in the Greater Los Angeles Basin.  These very appealing 2-bedroom, 1-bath units are located within walking distance of schools, a major city park and neighborhood retail amenities.  This asset has enjoyed above market occupancy rates during our holding period, while still providing continuous rental growth. The Property performed in excess of a 6% cap rate, in a market where comparable properties consistently sell for a sub 4.25% cap rate.  

We purchased this property in April 2012 for $2,515,000 and disposed of it in April 2016 for $3,750,000, resulting in a total unlevered return of 49% over our holding period.    

 

The Subject property, located in the USC area of Los Angeles, was assembled from late 2006 through mid 2007, at which time it consisted of an auto repair shop, a strip retail center and vacant land.  A 10-year triple net lease was negotiated with DaVita Inc., the dialysis division of DaVita HealthCare Partners Inc., a Fortune 500 company.  DaVita Inc. operates approximately 1,950 outpatient dialysis centers in the United States.

The entire 30,151 square foot site was scraped and replaced with a 9,988 square foot dialysis center.  The Subject property consists of exam rooms, medical and office space, an employee lounge, conference space and 28 dialysis stations.

In June of 2013 the Property was refinanced, at which time approximately 75% of our partners’ equity was returned.  This facility continued to perform well for DaVita Inc. and continued to provide our partners with cash flow.  

This property was sold June 2019 at a price of $7,0505,000, resulting in a $3,250,000 profit to our partnership.

 

This 6-unit property was purchased in September 2012 from Opus Bank via a short sale, five days prior to going to a foreclosure auction in the Huntington Park area of Los Angeles.  The property was renovated, stabilized and rents were raised resulting in an appraised value which was 21% greater than its purchase price, just 7 months prior. The property was sold in July 2016 for $1,145,000.00 and exchanged into a 26-unit two-story garden style pre-rehab value-add apartment complex.  

 

This 3-unit property in Los Angeles was purchased in June 2011 via a short sale from Bank of America, at which time 2 of the units were uninhabitable.  The property was renovated, stabilized and refinanced, returning 92% of investor equity in September 2012.  The property was fully occupied and continued to provide its investors with cash flow after debt service. The property was sold in August 2016 for $480,000 and proceeds were exchanged into a 26-unit two-story garden style pre-rehab value-add apartment complex. 

This out of state shopping center was acquired in June of 2007 for $1,150,000 in the residential neighborhood of Riverside, Ohio.  At that time $920,000 of debt financing was placed on this shopping center, which consists of 46,603 square feet of leasable space on over 7 acres of land.  Anchored by a 31,303 square foot Kroger Grocery Store, the Center also contains 15,303 square feet of in-line local retailers. 

This investment during our holding period performed at a 13.2% cap rate.  It was sold in June 2022 for $1,300,000.  Our leveraged return on this property was 170% over our holding period.  We have retained the ownership of a developable out parcel, which will further enhance our returns on this investment down the road.