Ground Up Development Project

[Andrew Greer]

Investment Info:

Large multi-family (5+ units) other investment in San Diego.

Purchase price: $505,000
Cash invested: $1,500,000

Ground up construction project in San Diego. Project used the DSDIB400 to add 2 additional rental units to the property via ADU conversion on new construction. Property has been refinanced and stabilized creating long term cash flow for the investors.

What made you interested in investing in this type of deal?

The in-fill market in San Diego has been very hot because of housing demand. This project offered the ability to add multiple units at a very cheap price due to our understanding of Zoning. We bought, permitted, built, rented and refinanced this property into our portfolio.

How did you find this deal and how did you negotiate it?

This was on the MLS as a burned down home

How did you finance this deal?

This project was syndicated with LP's and my team as the GP's. We also had a construction loan for the project.

How did you add value to the deal?

We built the entire property from the ground up.

What was the outcome?

The outcome was excellent. We achieved even higher values than expected because of the activity in the market that helped us reach new heights.

Lessons learned? Challenges?

Lots of lessons learned on project timing and construction. Was very happy with how it all worked out in the end and how we were able to obtain great rates on refi.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My team, Finest City Team and Thomas Strafford Investments managed all of the vendors from our resources. We partnered with Coastal Development Group as the GC on the project.