For Immediate Release – Wickatunk, NJ – October 1st, 2024
Development of 2 multi-family projects in central Los Angeles with seasoned sponsor.
Small Multifamily Developments are the key to fast exits
Amalfi continues to invest with Gatsby, who prioritize ground-up construction of small multifamily structures of 10 units or fewer. By focusing on projects with fewer units, Gatsby is able to secure the necessary building permits faster and reduce construction times to serve short-term investors. And because smaller buildings are in higher demand by investor-buyers, the completed project can be sold more quickly. On average, a multifamily development takes 18 to 24 months from the initial purchase through to the final sale.
Gatsby Investments: Deep market expertise and track-record: Gatsby was formed in 2016 and has started 80 transactions as of September 2024 with an average annualized net return to investors of 23%. Gatsby is a team of expert real estate professionals who source the best developers, operators, and builders in the country and manage those deals from start to finish. Their experienced and skilled team oversees every aspect of the deal. Gatsby has a special formula for maximizing the return potential of multifamily developments. It starts with the lot. Gatsby focuses on single-family lots that can be converted to multifamily use due to recent zoning law changes in California. This allows Gatsby to acquire land in Los Angeles for less than the cost of a comparable commercially-zoned lot. Then Gatsby works with award-winning architects to design floorplans with 3–5-bedroom units. This layout meets the increasing demand from growing families who have been priced out of the housing market, as well as co-living renters who are opting to live with multiple roommates to make rent more affordable.
Los Angeles: The demand for Los Angeles real estate remains high year after year. With the largest manufacturing base in the country, a fast-growing tech industry, and an increasing number of venture capital startups, Los Angeles offers an exceptionally dynamic economy. Add the attraction of the entertainment industry, the appeal of year-round sunshine, and the desire to live in one of the most exciting cities in the world, it is easy to see why LA has a proven record of consistent demand.
Limited supply is another key factor in the value of the Southern California real estate market. Housing in LA is sprawling and limited by geographic boundaries including the ocean to the west and the mountains to the north and east. The high demand and low supply have driven LA to become a market leader in both rent growth and property appreciation.
“This is our 3rd investment with Gatsby in LA and are extremely excited to be involved with such a vibrant and proven team with a unique platform. Their investing thesis to provide small multi- family buildings to investors / owners is a unique approach to filling a much-needed part of this market” said Raffaella Schnurr, President of Amalfi. “Los Angeles continues to see outstripped demand for rentals and Gatsby fills that need with manageable properties that also act as an income producing asset for owners willing to be a small landlord at the same time.” Schnurr said.
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Amalfi Capital is a real estate equity firm founded in 2015 that is an investor in over 5 million square feet of property throughout the United States. Amalfi focuses on expanding its portfolio by partnering with highly experienced sponsors who are experts in their respective markets by investing in commercial & industrial assets that we believe are well positioned for above market returns over the long run. Our conservative approach combined with markets and properties that have historically high occupancy, such as our concentration on multi-family, industrial distribution & flex space facilities, has been a winning formula since our inception.
www.Amalficapital.biz