Fund

Breakform Debt-Free Residential Fund Venice, CA

Property
Type
Single-Family
Investment Type
Fund
Asset Profile
Core
Min. Investment
$50K
Estimated Hold
7Y
Target Return (IRR)
16%
Target Annual Cash
12%
Target Equity Multiple
2.2x
 

Offered By

Breakform Realty Ventures, LLC Experienced Sponsor

El Segundo, CA

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Assets Under
Management

Currently
$60MM
Exited
$22.27MM
Portfolio LTV
N/R
Historical
Realized Returns

Total IRR
40%
Equity Multiple
2.2x
Annual Cash
12%
Years Of
Experience

As Principals
10+ years
In Business
2 years
Size
12 Staff
* All information is reported by Breakform Realty Ventures, LLC as of 4/17/2017.
 

About this Fund

The Breakform Residential Fund I, LP ("BRF I") acquires off-market single family residential homes in Venice Beach, California that are trading as a result of liquidity events and have reached a point of functional obsolescence.

We rent out the assets during the permit and entitlement period earning cash yields and then redevelop them by optimizing the land use.

We complete the entire cycle using equity only (no debt) so that all development risk is mitigated. Our project level gross returns are underwritten at 30% and the average project takes us 22 months to complete.

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Key Points

  • DEBT FREE: No debt utilized in the Fund which dramatically reduces risk to investors
  • SILICON BEACH: Hyper localized in Los Angeles' premier (technology driven) market of Venice
  • DISTRIBUTIONS: Quarterly distributions from rent and annual distributions from asset sales
  • CONSERVATIVE UNDERWRITING: Exit price underwriting at $1,050/sf in a market trading at $1,200/sf (see documentation below)
  • ALIGNED INTEREST: Sponsor interests are well aligned with the Investors (see FAQ)
 

Financials

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Location Details

Venice, CA

The Venice Beach area of Los Angeles CA is also known as "Silicon Beach" for the tremendous proliferation of the technology industry within the area. It's the faster growing tech hub in the US next to Silicon Valley, with offices of Google, Snapchat, YouTube, Electronic Arts, Riot Games, BuzzFeed, Vice Media all located here. It's the only part of the City of Los Angeles that actually touches the Pacific Ocean, the second largest revenue generator from being the strongest tourist destination (next to Disneyland) and there is no more empty land due to being one of the oldest areas of Los Angeles (infill). The demand here continually outstrips supply, leading to some of the most stable assets and also one of the highest upside appreciation amongst assets in Los Angeles.
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Documents

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Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

1) Waterfall based returns - Sponsor returns are much higher when the fund performs better for the LP investors

2) All Investors, including $1m+ family offices, will receive same terms (no split share classes)

3) Breakform does the Architectural, design, and steel fabrication work. Margins not lost to subcontractors, but instead are passed directly on to Fund (normal GC spreads are +15% compared to 7.5% in this fund.

This 7.5% fee is primarily utilized to cover hard costs to operate the vertically integrated development arm of the company. Profits are derived through the success of the fund rather than the development fees.

Distributions are scheduled to go out on a quarterly basis.

Yes, non-US residents are welcome to apply.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to US-based accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

Send Breakform Realty Ventures, LLC and/or RealCrowd a message. If you have a question about this offering ask Breakform Realty Ventures, LLC. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

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In the meantime, you can create an account to view detailed information about Breakform Debt-Free Residential Fund.

In the meantime, please review the offering documents and financials.

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