August 16, 2018
Vacation rentals are underway at all three Goshen units but the vacancy rate is still higher than it should be in order to attract a buyer for the property. The property manager expects that the rentals will be stabilized soon as renters continue to post positive reviews online. Also, we have strong interest from student renters looking for a 9 month lease in September which will create the annual rent roll of an attractive investment property when coupled with the summer vacation rentals. The condo mapping process with the City is underway, as mentioned last update round, in order to maximize upside potential for the sale as an investment property.
Project Stage: Completed and Cash flowing.
Felspar is completed and looking phenomenal. A neighborhood BBQ was hosted by the listing agents last week to build awareness about the property. The feedback from the neighborhood has been extremely positive, with many neighbors stopping in to congratulate and thank us for the project we have built in the neighborhood. The word has been getting out on the project completion and we are hoping to have these two great properties sold soon.
Project Stage: Completed and on Market.
We just celebrated a major milestone for Park Blvd last week as we received 1 out of the 2 permits we will need to build the project! The foundation and parking structure permit was approved on July 12th and we are currently working on the wood frame permit submittal. The process of securing a construction lending partner has begun and we are looking forward to breaking ground as soon as the wood frame permit is received. We are also down to four general contractors in the vetting process.
Project Stage: Pre-Construction. Foundation Building Permit Obtained.
As you know, the DiversyFund Income Fund makes loans to the properties under development by DiversyFund, some of which are now on the market. Please see the project updates for details on the underlying properties.
The Growth Fund has made several preferred equity investments such as our Park Blvd multi-family project, Goshen (student housing) and Felspar (Pacific Beach condos). We are currently performing due diligence on a new multi-family value add deal.