1491 Atlantic

1491 Atlantic

Urban Town Houses designed for affordable multi-generational family living

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Security Type
Preferred Stock
Categories
Real Estate
Min Investment
$1,000
Location
Long Beach, CA
Offering Date
September 01, 2020
Expected Close Date
October 31, 2020
Target Raise
$100.00K-$134.00K
Deal Notes

Price per Share: $1.00

Annual Preferred Return: 8%

Profit Share on Refinance: 50%

Term: 10 years

Company Description

The Urban Pacific Group (Urban Pacific) has broken the code to enable the development of profitable new construction workforce housing. This new development model, called Urban Town House (UTH), focuses on building new construction multi-generational workforce housing in blue-collar urban infill communities - where in the past the model has generated a 22.5% internal rate of return over an 18-month to 24-month investment period. These “recession resilient” units are differentiated from the marketplace by building a five-bedroom four-bathroom townhouse rental unit. 

Key Deal Facts

Experienced real estate developer. Scott Choppin is a highly experienced developer, with a strong understanding of issues that may arise in the cycle of development and the ability to form a comprehensive risk mitigation plan.
Undersupplied rental market. There is little competition in the market. Urban Pacific may be the only company building new units to rent to multi-generational families that include five bedrooms, and a ground floor bedroom/bathroom combination and that live like a single-family home.
Declining land and construction pricing. Land values in the Long Beach areas have declined between 8-15% and Urban Pacific anticipates that subcontractor pricing will be reduced by 10-30% as well.
Close to job markets and transportation. Urban Pacific avoids risk by locating in neighborhoods that are close to job centers and public transportation.
Simple construction design. Urban Pacific eliminates complexity in design to avoid the risk of unexpected construction costs. The UTH model employs a construction process similar to production homebuilding companies, building a simple 3-story slab-on-grade building and utilizing long-term trusted subcontractors.
Simplified zoning. Urban Pacific avoids entitlement risk by purchasing land sites that are “use by right”. This means there is no time lost in applying for zoning permits, and this can mean a significant time savings.
Efficient build and lease up schedules. Construction is typically completed in under 6-9 months, reducing exposure time to market. Total investment periods are generally between 16-24 months.

Management Team / Advisory Board Bios

Scott K. Choppin is the Founder of Urban Pacific where he oversees all operations including business development, capital acquisition, and strategic planning. Scott is a veteran of the real estate development business, and a specialist in the development of high-quality urban housing projects throughout the Western United States.

With over 35 years in the development business, Scott is a leader in the field, and has been a speaker at the International Builders Show, the Pacific Coast Builders Conference, SoCal BIA’s BIS Show. Scott is also a published author in the real estate development field, and a regular contributor to major media outlets throughout the nation having been published or quoted in Forbes Magazine, Los Angeles Times, Long Beach Press­Telegram, GlobeStreet, Builder Magazine, Affordable Housing Finance, Affordable Housing News, and most recently, the cover and feature article in Multi­Family Executive magazine.

Prior to forming Urban Pacific, Scott was Director of Land Acquisition for the Multi-Family Development Division of Irvine-based Sares-Regis Group. In that position, he was responsible for all land acquisition activities for the development of luxury, market rate and senior rental communities throughout California, Colorado, and Arizona.

Before joining Sares-Regis, Scott was with Kaufman and Broad Multi-Housing Group. As Senior Project Manager, he was responsible for all activities related to multifamily development, including the acquisition, entitlement, syndication and development of over 1,900 affordable multifamily units throughout the Western United States.

Scott holds a degree in Business Administration with a specialization in Finance from California Polytechnic State University (Cal Poly), San Luis Obispo.

Deal Notes

Price per Share: $1.00

Annual Preferred Return: 8%

Profit Share on Refinance: 50%

Term: 10 years

Amount Raised : $0
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Security Description

Preferred securities are a type of investment that generally offers some sort of preferred treatment through a dividend or preferred treatment in a liquidation.

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