LOS ANGELES—Presidio Residential Capital has invested $18.7 million in South Coast Builders, an affiliate of South Coast Communities, development project in Baldwin Hills. The 51-unit development sits on 3.6 acres, which formerly housed a church and school. Construction efforts will launch later this year.
Presidio Residential provided all of the capital to fund this project, which is not unusual for the company. “Presidio provides substantially all of the investment dollars need on the projects we fund,” Don Faye, principal and Presidio Residential, tells GlobeSt.com. “We do not bring in other investors on our projects although on occasion we will use Bank debt for some of the necessary funding.”
South Coast Builders is designing the 51 detached units in three floor plans: a three-bedroom unit with a two-and-a-half bath, a three-bedroom unit with a three-and-a-half bath, and a four-bedroom unit with a three-and-a-half bath. The four-bedroom units will also feature top-floor balconies and third-floor casita with a terrace. Each floor plan comes in two or three different variations. Additionally, the community will be gated and includes a community park.
The Baldwin Park community is in need of additional housing, and Preisidio Residential believes that this development location presented a strong investment opportunity. Located at Baldwin Park Boulevard and Merced Avenue, the community is within close proximity to job centers as well as shopping and restaurants. “We like the greater Los Angeles market including Baldwin Park, which is underserved from a new housing standpoint,” says Faye. “This will take a property that is older and in need of significant work and turn it into modern housing. We also have an outstanding relationship with our development partner, Southcoast Communities.”
Presidio Residential has also partnered with builder Watt Communities to develop a $55-unit community in Sacramento. Similarly, they have provided $18 million in funding for that project, which will sit on a six-acre plot. The project is expected to begin in April of this year.