Single Family Residential Optimization Strategy
We target land with existing improvements in areas with extremely high demand versus supply imbalances in prime infill markets. We acquire homes where the existing improvement dramatically underutilizes the build allowances for the lot. Renting the existing dwelling while we get the asset entitled and permits ready for redevelopment further enhances returns. We are underwriting build spreads north of 25% on an unlevered basis.
For this strategy we are especially focused on areas like Venice, Santa Monica, Brentwood, Beverly Hills, Newport Beach, Corona Del Mar, Manhattan Beach, Redondo Beach, Pacific Palisades, Marina del Rey and Playa del Rey.
For more information about our thinking around the “Single Family Optimization Arbitrage” please visit the White Paper section of our site and refer to: The Single Family Residence – Rise of an Asset Class