Markets
The Company has identified a niche in the San Diego real estate market that it concludes affords an excellent opportunity to create substantial value and earn significant returns with relatively low risk. That niche is infill property located within a mile of the coast - preferably enhanced by views and/or coastal access.
The Company has concluded that coastal-oriented properties are more resistant to the quirks of the marketplace than other properties. It has observed that during the normal swings of the market, coastal properties are the last to drop in price, and the first to return to “normal”. Therefore, it is leading to our conclusion that these properties tend to be most risk averse, and present better opportunity for selective development.
Many of the properties have had agricultural histories, being owned by growers or greenhouse operators. Recent market conditions have resulted in some of the properties becoming acquirable within a current opportunity window. The Company has developed a network of local real estate agents, active in these types of properties, and has developed credibility with these agents. Thus, the Company has been able to get earlier viewing (sometimes first-look) as new product becomes available. With the addition of an operational infrastructure, the Company will cold-call in areas and on properties not currently on the market, but deemed to be strategic. The Managing member of the company (101 Management Group) now includes a full time member, Adam Campbell. Adam’s primary mission is to locate opportunities that fit the established profile of desirable properties. This approach has yielded substantial return for the La Costa Avenue properties and all the projects done to date under the direction of the original 101 Investors, LLC.
Objectives
The Company is looking for projects that have considerable upside that will benefit from its proven value added expertise. The typical deal scenario follows an our successful established pattern. The property is identified and a deal negotiated with a substantial due diligence period – sufficient to include issues like soils, environmental, zoning, etc. Upon purchase of the property, entitlement activities are initiated to add value to the property. These may include boundary adjustments, the mapping (subdividing) of the property, along with addressing all engineering, local city regulations, neighborhood concerns and political issues associated with the process.
Following the entitlement activities of the project, the ownership entity has several options. First, sell the property at a price reflecting the value that has been added to the property. Second, further develop the property by completing the lots. Or, third, complete the residential or commercial development of the property alone or with a credible builder/partner.
