OCEANSIDE PROJECT SUMMARY
Build 10 condos (1000-2000 sq. ft each) and 2 retail units (700 sq ft each) on the vacant lot at 314 N. Cleveland Street. Project will feature: solar, electric cars, net-zero energy and LEED Platinum rating. It will be the only LEED platinum rated condo development in Downtown Oceanside.
Sell all condos and find tenants for retail locations on 3 year leases and sell retail locations at a 6% cap rate. These retail locations would garner a premium because they are close to the beach and on a walkable street. There are no other retail locations available nearby in brand new buildings. The project is also 1 block from Stone Brewery’s new tasting room so there may be an opportunity to put a wine bar here as well.
47% in 18 months. See pro-forma for more details.
Minimum $100k (will do lower for you if you want).
10% preferred return.
Pro-rata share of 50% of the profits.
Why This Deal Works:
We’re using city approved plans. Almost all of the entitlement risk is gone since we’re using plans the city has already approved. This is usually the biggest risk on any development and we’ve got it covered. Additionally we’ve met with the City Manager several times and he loves this project. Last week he said that our plans and design were “10 times better than anything I’ve seen recently” (his quote).
Neighborhood is strong. We’re two blocks from the beach and the only unimproved lot on the street. There are gorgeous row homes that start two buildings away and Succulent Cafe is next door.
Our target market (young professionals) have few, if any, options in north county to find new green condos within walking distance to the beach under $700k. There is demand for it and zero supply. We are priced in the range they can afford and are building something they want.
The parking lot across the street is set to be developed into a gorgeous Santa Barbara style plaza with outdoor restaurants, shops, etc. This is only going to help our sales values and the desirability of our project.