$1.14M
Sale price
Single Family · Los Angeles
Paseo Moderna
3406 The Paseo · Sold · $1.14M · 2013 – 2016
53.3%
Gross profit on cost
$0.75M
Total project cost — lowest in portfolio
New build
Ground-up construction
The Investment
The smallest project in the portfolio, at a 53% margin.
At $0.75M of total project cost, Paseo Moderna is the smallest development in the 21-project schedule — and a useful demonstration that the underwriting discipline does not change with deal size.
The scope was a straightforward ground-up build with no entitlement complexity, designed for an entry-level buyer pool where finish quality and efficient layout matter more than square footage.
It sold in 2016 for $1.14M — $0.40M of gross profit at a 53.3% margin on cost, in line with the portfolio's 51.1% median despite being a fraction of the size of the projects around it.
Gallery
The property.
Return On Investment
The numbers.
| Strategy | Total project cost | Disposition / value | Gross profit | Profit on cost |
|---|---|---|---|---|
| New construction | $0.75M | $1.14M | $0.40M | 53.3% |
This project was completed by the principals through Thornton Development Group or an affiliated predecessor entity. It was not an Assemble Capital offering and did not involve Assemble Capital investors. Figures are sponsor-level, pre-tax, unaudited, and derived from internal records, closing statements, and lender documentation. Past performance is not indicative of future results.
Investment Cycle
How the deal ran.
Every project follows the same arc — acquire, design and permit, build, market, exit. What changes is where the time and the risk concentrate.
2013
Acquire
Small infill lot acquired at the portfolio's lowest cost basis.
2013–2014
Permit
Straightforward by-right permitting.
2014–2016
Build
Ground-up construction for an entry-level buyer pool.
2016
Exit
Sold at $1.14M — 53.3% gross profit on cost.
The Takeaway
The buy box has a floor, not a ceiling on discipline. Small projects get the same downside test as large ones.
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