Topanga investment strategy is focused on the acquisition and entitlement of institutional quality multifamily and mixed-use (residential units over retail) properties pursuant to the following criteria:
- Develop and build by-right residential projects under 49 units in California.
- Acquire, entitle and develop institutional quality multifamily and mixed-use (e.g., residential over retail) projects.
- Assemble multiple, smaller adjacent parcels where at least two sites can be aggregated together for efficient management and scale.
- Target properties in “A” and “B” locations that are either core, core adjacent or gentrifying to core in Southern California.
Topanga investment portfolio includes properties in Southern California. Topanga is actively underwriting value-add and RTI ground-up projects in California.
Topanga designs and builds apartment homes with current technologies and “smart” design techniques that meet the evolving needs of each market, resulting in efficient buildings that create the feeling of home for our residents and return value to our investors.
Topanga chooses development projects that combine local knowledge, risk-adjusted returns, and market trends. We have development steps that we follow, honed from our experience, and executed with a team approach.
We know how to select sites and turn big opportunities into even bigger returns. Our team conducts a comprehensive due diligence analysis by evaluating the following aspects of the targeted property:
- Financial Feasibility and Economic Analysis
- Environmental Investigation
- Pro Forma Budget Analysis
- Geo-technical Site Assessment
- Entitlement Assessment
- Value Engineering
- Site Plan and Conceptual Plan Development
- Market Analysis and Trends
Our approach is hands-on, innovative and returns-driven. From market analysis and site selection to project financing and site plan development, we provide a vertically integrated platform capable of managing the development process efficiently.
Our Investment Philosophy
WHY CHOOSE MULTIFAMILY?
Dependable Income Stream: Multifamily investments provide a regular and dependable income stream, producing positive cash flow that is higher than typical stock dividend yields. Investing in the stock market is both volatile and uncertain, while an investment in multifamily real estate provides an overall much greater ROI in the long run.
Tax Benefits: The US Tax code benefits real estate investment in multiple ways.
- No limit mortgage interest deductions and depreciation accelerations that shield a portion of the cash flow generated and distributed to investors.
- On a sale, the IRS also allows investors a 1031 provision, which allows investors to exchange into another investment property and defer all taxable gains into the future. Topanga works very closely with experts in this area, providing investors with additional support and control of a transaction.
Appreciation of Asset: Multifamily properties provide excellent appreciation in value that meet and/or exceed other investment types. Apartment assets increase in value as the net operating income of the property improves through rent increases and more effective management of the asset.
Scalability: Multifamily real estate is suitable for investors who wish to accumulate a large portfolio of rental units. Acquiring and managing a 20-unit apartment complex is much more efficient, for example, than purchasing 10 individual duplexes. With the latter option, an investor would need to negotiate with multiple sellers, conduct inspections on 10 individual properties located in different areas, and close 10 separate loans for each property. To avoid this headache, investors purchase one property with 20 units.