October 19, 2018
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), along with a small investment in Granito Drive. We are currently performing due diligence on several multi-family value add deals and have recently made two offers on multi-family deals and are waiting to see if our offers are successful in the bidding process.
Park Blvd is moving along while the 2nd permit for the wood frame is still being processed at the city. We are expecting final bids from all the general contractors this week and will be making our final decision on the team that we will be working with shortly. The architect is finalizing the interior finish package for the property. We are aiming to start demolition before the end of the year so that we are able to start foundation construction in early 2019 once the wood frame permit is secured.
Project Stage: Pre-Construction. Foundation Building Permit Obtained. Wood Frame Permit in Progress.
The Granito site is moving along and we have 31 shoring piles that have now been drilled, each 75 feet deep with concrete back-fill in place. This past month, the builder team has been implementing soil erosion controls to deal with any slope runoff during the rainy season. There has been a major foundation revision from the Roman James team that we have submitted to the city that will save a significant amount of money. We expect approval without issue as we start the second phase of grading and shoring piles.
Project Stage: Construction.
Two units are now in 9 month leases at the property in addition to one of the units continuing to run as a vacation rental to maximize rental returns. We have achieved our Right of Way permit in order to add a third water meter which is going to allow us to finish up the condo mapping process. We are looking forward to having this completed and realizing a maximized upside for the sale of the condominium units as an investment property.
Project Stage: Completed and Cash flowing.
The front unit is under contract to close in November. Interest in the Felspar properties has been very high with what our agents believe is higher than normal traffic through the properties. The properties are receiving a lot of compliments and we are confident that we will be able to get the back unit under contract by the end of the year.
Project Stage: Completed and on Market.