Strategies - Breakform

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

Small Lot Maximization Strategy

Due to the dramatic housing shortage in Southern California – and especially in the metro Los Angeles area – the availability of turnkey product at affordable prices is extremely low for the first time home buyer.

We are focused on taking advantage of the Small Lot Ordinance within Los Angeles County to deliver new, eco-friendly fee-simple Townhouses/Townhomes measuring approximately 1200 – 1800 square feet in size.

For this strategy we focus on urban infill areas like Silver Lake, Westlake Village, Echo Park, Mt. Washington, Hollywood, Palms and Mar Vista. For more information about our thinking around the “Small Lot Subdivision Arbitrage” please visit the White Paper section of our site and refer to: Small Lot Townhomes – 1st Time Homebuyers Affordable Dream.

Multi-Family Deep Value Add Strategy

We look for apartment buildings that are “C grade” in condition within the prime urban infill markets of West Los Angeles. Our acquisitions criteria involve average rents that are 25% below market rate and operating costs that are 10% higher than what we can operate and manage the property for. We also look for arbitrage opportunities arising from underutilized or under-optimized entitlements. We manage and operate the improvements to take advantage of these “spreads to market”. This takes real and deep value-add work and often some level of redevelopment activity.

For this strategy we are focused on the prime markets including Brentwood, Beverly Hills, Westwood, West Hollywood, Hollywood, Malibu, Century City, Pacific Palisades, Santa Monica, Venice, Playa Vista, Playa Del Rey, Mar Vista, and Marina Del Rey. For more information about our thinking around the “Multi Family Value Add Arbitrage” please visit the White Paper section of our site and refer to: Multi Family Real Estate – Why it’s the Darling of Real Estate Investors.