Once complete, Rithm At Uptown will be one of the largest, mixed-use innovation communities in the state with capacity for more than seven million square feet of development, including several thousand residential units.

Anyone done this and had it work out?

So what you posted as your reasoning behind the LLC is great, and does work out for investors.

Anyone in your life, circle, company that is doing well you should want to support them and help them grow not suppress and try to gain ownership, that's bad business and i've never seen it work out for anyone.

While it all might work out and you end up on the right side of things, but it could just as easily go the other way. 

If UCSB opens up fully, but the dorms are at half capacity, the demand on the housing outside the dorms increases even more

I personally think you should invest in an area like Pittsburgh where you can pick up your first few properties either single family or multi-unit at low risk as you can pick up single families in the $50-$100 range easily and rent at a 8-12 CAP and if things don't work out, or you change your strategy (i.e. decide to sell off your single family to focus on multis or vice versa) you can do so easily and for profit in most cases2.

Is there a lot of excess capacity? 

It's expensive and will not work out as a cashflowing property.Why would you need a seller finance for 5 years at 4.25 %.

I have found this does not work out well if you try to show ahead of time.