As part of our broader strategy of building new homes in major cities with a housing shortage, we’ve partnered with a local builder to acquire a 28,800 square foot property in the San Pedro community of Los Angeles for a future housing development.
Business plan
Our partner, Square One Homes, aims to obtain the necessary entitlements and permits to build 19 small-lot townhomes on the property, a process that we expect to take around 21 months to complete. At this point, we expect to either begin construction on the homes, or sell the shovel-ready site to another builder.
Why we invested
- Strong relationship with local partner: this is our fourth investment to date with Square One Homes, an LA-based real estate investment firm with extensive experience navigating the local entitlement and permitting process.
- Fast-growing neighborhood: The San Pedro neighborhood is undergoing major redevelopment with plans to renovate and expand the existing waterfront area. Highlights to the new development include an open-air amphitheater, a children’s play areas, and new dining options.
- City-wide housing shortage: LA home prices have grown much faster than incomes in recent years, resulting in a major affordability crisis within the city. With large sections of the city simply out of reach for many renters and homebuyers, we believe that investments which create reasonably-priced new homes will deliver attractive long-term returns. See our LA market analysis
