You can now invest in The Lake House development!
ENDVEST is pleased to offer a $5,000,000 equity investment opportunity to capitalize a 62,095 square foot condo development project comprised of twenty-five (25) units in total. Sixteen (16) units are proposed to be 2 bedrooms and 2 bathrooms with bonus space. Nine (9) of the units are to be 3 bedrooms and 2.5 bathrooms. The project is located at 601 MacArthur Boulevard, just a few blocks above Lakeshore Avenue, Lake Merritt, and the 580 on ramp.
Each of the 2 bedrooms and 2 bathrooms’ condo units are expected to be approximately 1400 - 1600 square feet. The 3 bedrooms and 2.5 bathrooms are projected to be approximately 1800 - 2200 square feet. The total project is a 39,000 sf net-sellable condo project. The location and design of the condos offer many benefits and amenities and will appeal to a broad market of buyers.
As an ENDVEST Partner you get to track your investment through its lifecylce. The timeline below shows you side-by-side the phases of development and the general timeframe of your cash distributions.
Simply input how much you want to invest and the assumption scenario you wish to play out and the timeline will calculate your Distributions, Total Profit and Final IRR.
Total Cash Return
Internal Rate of Return (IRR)
This will be the first new-build condominium development in the Lake Merritt in the last 20 years.
The demand for new condos in the area is extremely strong according to all the realtors we have spoken to.
Development will include luxury elements and demand top market prices.
The project will be constructed with luxury elements throughout with units appealing to those that are in the market for top quality new condominiums at affordable prices. The projected selling prices for these units is 40% below the cost of similar units in San Francisco.
The property is on one of the best lots in the Lake Merritt neighborhood.
The location of the project within walking distance to Lake Merritt, BART and fine shopping/dining makes it ideal for families, empty nesters and young professionals. Buyers will have the best of all worlds – minutes away to San Francisco via BART, healthy and vibrant lifestyle around Lake Merritt and world class dining and entertainment within a stone’s throw.
A $5,000,000 equity investment in the project entity that will acquire the land for $1,900,000 or $76,000 per unit and build a new 25-unit condominium community comprising of 2 and 3-bedroom units ranging from 1,250 to 2,300 sq. ft. The project is expected to be constructed and units sold within a 24-month period - 18-months in construction with a completed sellout within 6-months of project completion. The double waterfall return is structured to incentivize the developer to maximize profit and reduce cost to achieve a base case net cash flow of greater then $4.9M showing an investor a 30.4% IRR and a ROI of 170%.
The location of the project is within walking distance to the famous and beloved Lake Merritt in dynamic Oakland, California. Units will be sold as condominiums in one of the country’s hottest residential markets where the demand has outstripped supply by a large margin.
As the jewel of the City of Oakland, Lake Merritt is one of the most unique urban spaces in the United States. Its 3.4 miles of heart-shaped shoreline in the center of an exceptionally diverse city where individuals and nature migrate, meet and mingle daily. It is also home to the oldest designated wildlife refuge (1870) in the United States. Many are coming to Oakland for other reasons as well. The city is going through enormous transformation with new companies, tech staff and families coming across the East Bay for more affordable office space and housing including Uber International with nearly 3,000 of staff. Housing is in very short supply creating significant opportunities for investors of new rental and condominium units.
ENDVEST and its local partners are developing several properties along the Lake Merritt neighborhood. This 25-unit luxury condominium community (the first new condo in the area for the past 15 years) with exceptional views of the lake and walking distance to the BART station, this unique project is destined to be quickly absorbed by those fleeing the high rents across the bay. Residents will enjoy the unique lifestyle around Lake Merritt while having easy access to highways along with BART and other mass transit services. UC Berkeley is only minutes from the location. Investors can participate directly into the project entities that can be shovel ready this year at very attractive entry points. This in-turn provides exceptional returns with relatively low risk for both equity and debt investors.
Expected Buyer Demographic
Younger Single & Coupled Professionals
The first group of young professions will be buyers that have good credit and purchase power. These buyers want a convenient urban lifestyle with all the amenities of city living outside their front door. This group is presently located in Oakland as well as San Francisco. They see the exceptional value of the mortgage tax deductions. They prefer quality of life, open space, parks and warm weather of Oakland over the density of urban living in neighboring San Francisco. Lake Merritt is a popular destination for these buyers.
The group of buyers are recently coupled and/or on the cusp of family planning. Strong income and great credit define this group. This group wants a lower maintenance purchase option. Although single family homes are preferred, this group likes new construction and wishes to avoid home renovations as it is what most homes within the area require. This group wants the local culture and city amenities of their younger years, but requires the space for a new family to grow.
This group is looking to reintegrate into an active environment that is easy to navigate. They want an easy and new purchase option. These are the empty nesters; both singles and couples. They currently reside in Montclair or larger homes in nearby areas. The baby boomers are downsizing and they want to remain close to home or nearby. They enjoy the culture and amenities of Lake Merritt and neighboring communities.
Amenties to attract these groups of buyers include:
- Local farmers market.
- Recreation along and around Lake Merritt.
- Amenities of food, cafe, shops and other local retail along Grand Avenue and Lakeshore Avenue as well as on Lake Merritt.
- Major retailers (Trader Joes, Starbucks, Peets, Safeway, various drugstores and on.)
- Attractive local transportation options of AC Transitas well as Casual Carpool.
- 580 on and off ramps.
- Proximity to Piedmont, Adams Point, Jack London, uptown and Downtown Oakland.
- Close Proximity to BART Station.
History of the Project
In November of 2002 the Oakland Planning Commission approved the development of 32 residential units for this site. At that time the site was zoned as R-60, Medium-High Density, and the code allowed a total of 25 units to be constructed on the site. Pursuant to the City’s density Bonus ordinance, the developer requested and received a density bonus of 7 units above the R-60 districts maximum. Current Zoning, effective April 2011 has changed to RM-3 and would conditionally permit a maximum of 13 units on the property. Recent meetings with city officials and local residence has established that approvals for a 25-unit condominium for the site is favored and likely to be granted, provided that appropriate filings are completed.
|Asset Class||New Residential Sales|
|Property Size||25 Resi Units|
|Current Status||New Construction|
When you purchase an LLC Interest, you will become an owner of the Company, which is a Delaware limited liability company. Your ownership will be governed by the Company’s Operating Agreement, which we refer to as the “Company Operating Agreement,” and the Delaware Limited Liability Company Act. You can read a summary of the Company Operating Agreement here and see the agreement itself here.
The Company in turn is a member of of the Project Entity, which is governed by an Operating Agreement dated May, which we refer to as the “Project Operating Agreement,” and by the Delaware Limited Liability Company Act. You can read a summary of the Project Operating Agreement here and see the agreement itself here.