4 – 20
Units per project
Strategy 03 · MF–Dev
Opportunistic & Value Add
Multifamily Development
An opportunistic and value-add strategy: ground-up four to fourteen unit buildings — sold stabilized, or refinanced into term debt and held.
12 – 30 mo
Build duration
≥ ~1.20 – 1.25x
Refinance DSCR discipline
2
Exit pathways underwritten
Underwriting targets, not promises or guarantees. Individual investments may vary; final parameters are governed by each investment's definitive documents.
The Reasoning
Los Angeles is structurally short of housing, and the law has recently made small buildings far easier to build.
The supply case is not a forecast — it is arithmetic. Los Angeles has permitted housing well below household formation for years, and the constraint has been regulatory as much as economic. A sequence of state legislation has shifted meaningful categories of small multifamily from discretionary approval into ministerial pathways, which removes the political risk that historically made these projects unfinanceable.
Four to fourteen units is a deliberate band. Below four, the economics do not carry the fixed costs of development. Above roughly fifteen, projects begin crossing thresholds — financing complexity, prevailing-wage exposure, and the size at which institutional developers compete — that erase the advantage of being small and fast.
The structural benefit of this strategy is optionality at the end. A stabilized building can be sold to an investor at a cap rate, or refinanced into term debt and held. That choice is made at completion, with real market information, rather than committed to at acquisition. It means we are never forced to sell into a bad cap-rate environment to return capital.
Three of our four delivered buildings were refinanced and retained. The largest, 10957 Calvert, has fourteen units. Any gain on a retained building is unrealized until it is sold or refinanced again.
How It Works
Four Things This Strategy Depends On.
Supply
Build Where the Shortage Is
Concentrated in North Hollywood and Hollywood-adjacent submarkets with deep, consistent rental demand.
Scale
Deliberately Boutique
Large enough to carry development cost, small enough to stay below the thresholds that attract institutional competition.
Optionality
Decide the Exit at the End
Sell stabilized or refinance and hold — the choice is made with market information, not assumed at acquisition.
Coverage
Underwrite to Debt Service
Refinance discipline targets DSCR at or above roughly 1.20–1.25x, with coverage disclosed per asset.
Track Record
Completed.
Three of these buildings were refinanced into term debt and retained as fully leased rentals; any gain on them stays unrealized until they are sold.
No boutique multifamily project is currently in entitlement or construction. The platform's active development capacity is presently committed to fee-simple subdivisions and the tenancy-in-common project, and new multifamily acquisitions would be capitalized through future project-specific offerings.
What Can Go Wrong
The Risks We Underwrite Against.
Every strategy has a failure mode. These are the ones specific to this one — the complete risk disclosure for any investment lives in its offering documents.
- Debt service coverage is the live risk on held assets. Coverage on each retained building is monitored individually against vacancy and rate movement, and some carry thinner cushions than others.
- Equity marks on retained buildings are unrealized and levered. A modest decline in appraised value produces a disproportionate decline in the equity mark.
- Construction cost, lease-up timing, and rent regulation each affect outcomes, and refinancing depends on credit markets that are outside our control.
Investor Relationships
Start With a Conversation.
We get to know investors before any specific project is discussed. Projects in this strategy are held in project-specific LLCs, with the principals personally guaranteeing the project loans, never our investors. Nothing here is an offer to sell or a solicitation to buy any security.
Contacting us is not an offer, commitment, or investment. Any offering is made only through definitive offering documents to eligible investors with whom we have a pre-existing relationship.