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Craft & Voltaire
$7.1M Joint Venture Equity
Fident Capital secured $3.6MM of joint venture equity for the development of 19, two and three-story townhomes in the highly supply-constrained and walkable San Diego neighborhood of Golden Hill, and $3.5MM of joint venture equity for the acquisition and development of a 17-unit townhome project in Point Loma, one of San Diego’s premier coastal markets. A private investment firm provided the equity.
Both developments will deliver new, attainable, product to areas with limited supply. These central locations provide good proximity to major employment centers, schools, and the recreational amenities that add to each neighborhoods’ livability.
The three-story product comes with private two-car garages and target first or move-up home buyers who prefer the amenities of a new home, more energy efficient living, and modern architecture over the old and more expensive inventory of Victorian, Craftsman, and Colonial Revival homes which dominate San Diego’s close-in older neighborhoods.
Challenges to the project included re-marketing the Golden Hill deal after the original equity source paused operations at the closing table due to general COVID-induced uncertainty, the market for for-sale housing, and their CLO portfolio. Additionally, the relatively small check size for each project dramatically diminished the buyer pool. Fortunately, merging timelines allowed both deals to be presented as a larger investment opportunity which increased interest and ultimately lead to a successful close. The projects’ performance is not crossed, each stands as an individual investment.