The Growth Fund is invested in a brand new value-add asset named Summerlyn in Texas. Closing is anticipated next month for this new 200 unit project that is targeting an 18% IRR to the Growth Fund. Our real estate team is out in Texas currently looking at 2 other value-add opportunities that the Growth Fund would benefit from as well.
The City should be a couple of weeks away from fully approving the Park Blvd project so we have begun the process to move forward with demolition permits. The big items include asbestos clearance and completing utility disassembly from the old structures. As we gear the project site up to begin construction we are working on finalizing the capital stack structure for the construction financing. We are preparing to break ground on this project at the end of Q2.
Project Stage: Pre-Construction. Demolition Permit in Progress. Construction Financing in Negotiation
The Granito site has been pushing forward with grading on the site with engineers while negotiations continue to secure the best financing option for the site. We are currently completing the builder contract with Shawmut, the new general contractor, to ready the project with the vertical construction once the land is prepped.
Project Stage: Construction.
The asset continues to cash flow while the project is going through the condo mapping process with the city. We are also preparing to refinance the current loan to a lower rate that will increase the cash flow for the property until the condo map process is complete and the property is listed for sale.
Project Stage: Completed and Cash flowing.
Park Blvd Investment Update Q4 2018 The Park Blvd project is close to receiving full permits. While the holidays slowed down response time from the City, our team is clarifying what will most likely be the last round of comments before locking in the wood frame permit. As mentioned in previous updates, the foundation permit…
DiversyFund Q3 Investment Update DiversyFund Growth Fund 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…
DiversyFund Q2 Investment Update Goshen- Investment Update Q2 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…