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    CATALINA VILLAGE – REDONDO BEACH, CA

     KEY INVESTMENT HIGHLIGHTS
     
    Total Project Capitalization:

    $48.9 Million

    Projected Returns:

    18-19% IRR | 2.4-2.5x MOIC | 5.5-6% stabilized YoC

     

    Equity Sought: $5 Million
    Hold Period:
     ~1 Year or ~4 Years
     

    Gould Capital is representing Beach City Capital in sourcing $5 million of preferred equity to capitalize the construction of Catalina Village, a 32-unit coastal multifamily development with 3,000 SF of retail located in Redondo Beach, CA - one of the most supply-constrained coastal submarkets in Southern California.

    The project is being capitalized at approximately $48.9 million total cost, with the current $5M tranche funding land close, repayment of existing obligations, and advancement through permitting ahead of vertical construction. The sponsor has approximately $4.6 million invested to date, reflecting multiple years of entitlement work in a jurisdiction where new multifamily development is difficult to execute.

    Catalina Village is underwritten as a for-rent multifamily asset, with a projected ~18-19% project-level IRR, 2.4-2.5x MOIC, and ~5.5-6% stabilized yield on cost over an approximate 4-year business plan. The investment is supported by an attractive ~140–155 bps development spread to a ~4.25% exit cap, consistent with other institutional quality coastal California development opportunities.

    Situated in a high-barrier-to-entry coastal market, the project benefits from limited new supply, restrictive entitlement conditions, and a lack of comparable institutional-quality product. Recent nearby transactions have occurred at sub-4% cap rates, and the absence of new deliveries reinforces the long-term positioning of the asset for institutional exit.

    Current Fund Positions

    Investment Overview

    Capitalization: The sponsor is seeking $5 million of equity to fund land acquisition and pre-development. The capital structure contemplates senior A&D financing at close, with flexibility to refinance into construction debt upon completion of permitting. This tranche of equity may be repaid prior to vertical construction (~12 months) or remain in place through final disposition (~48 months), depending on investor preference.
     
    Development Profile:Development Profile:  The project consists of 32 residential units and 3,000 SF of retail, designed as a for-rent multifamily asset with additional value creation through a condo map overlay, providing long-term optionality without altering the core rental execution strategy. The current phase focuses on land close and permitting, with an expected transition to vertical construction following permit completion in ~12 months.
     
    Deal Highlights:
    • ~$48.9M total capitalization | $5M pref equity raise
    • Projected 18-19% project-level IRR + 2.4-2.5x MOIC | ~4 year hold
    • Projected 5.5-6% stabilized YoC | ~140-155 bps development spread
    • 32-unit coastal multifamily + 3,000 SF retail
    • Redondo Beach, CA - supply-constrained coastal submarket
    • Sponsor basis of ~$4.6M with entitlements in place
    • For-rent execution with condo map optionality
    • Institutional-quality exit profile in a high-barrier market

     

    The materials presented herein are for informational and evaluation purposes only and are intended solely for use by sophisticated institutions and accredited investors. Gould Capital (“GC”) is acting solely in a strategic advisory and consulting capacity and is not a registered broker-dealer, investment adviser, or placement agent. GC does not provide investment recommendations or offer securities for sale, and nothing contained herein shall constitute an offer to sell or a solicitation of an offer to buy any security. All information provided is based on data received from third parties, including project sponsors and operating partners. While GC endeavors to present information believed to be accurate and reliable, GC makes no representation or warranty, express or implied, as to the completeness, accuracy, or timeliness of the information, and assumes no liability for any loss or damage resulting from its use. Any prospective investor must conduct their own independent evaluation, due diligence, and risk assessment before making any investment decision. Participation in any investment opportunity introduced by GC is done at the sole discretion and risk of the recipient, and GC shall not be held responsible for any investment outcomes, financial performance, or business decisions made as a result of these materials. GC’s role is limited to making strategic introductions and supporting deal evaluation and communication processes. Any potential investment must be undertaken pursuant to definitive offering documents provided directly by the sponsor or issuer, who alone bears responsibility for any securities offering. By reviewing these materials, you acknowledge and agree to the foregoing limitations.

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