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Disposition Valuation for Residential Assets

Disposition Valuation for Residential Assets

Disposition valuation for residential assets as part of a capital recovery plan in connection with a luxury “resort residential” development.  Our work included the feasibility analysis of alternative disposition strategies as well as preparation of select due diligence materials for use by 3rd-party buyers.   Some operating arrangements of interest to prospective acquirers included community association issues, third-party sales agents agreements, and project permits and entitlement-related matters.


The alternative disposition strategies included:  1) continued hold, build-out, and sales (status quo); 2) same as first alternative but in joint venture with a new capital partner; and 3) the complete sale of the project “as is.”


The Hamilton Cove property is located on Catalina Island, just 26 miles off the coast of Southern California.   The resort-residential community is situated within a private cove next to the town of Avalon, the main community of Catalina Island.   At the time of our disposition valuation for these residential assets,  many of the secluded villas of Hamilton Cove were offered for rent for weekend, weekly, and seasonal occupancy, and this fractional use was part of our valuation.


Catalina Island history goes back well before recorded times.   Apparently, the Pimungans of Santa Catalina Island first met European travelers in 1542 – when the native peoples paddled out to greet Spanish explorer Juan Rodriguez Cabrillo and his galleon – just 50 years after Columbus first entered the Western Hemisphere.  On this basis, the island was claimed by Spain. Santa Catalina Island was awarded to Thomas Robbins by Mexican Governor Pio Pico, as a land grant in 1846.   The land grant by Governor Pico was made just four days before the U.S. invaded California.


Our disposition valuation for these residential assets was part of an overall BCE Development Corp. portfolio sale involving the company’s properties in the western U.S., which included the Hamilton Cove resort-residential community.

Hotel Development Consultants - Due diligence consultants

Huntington Hotel Pasadena

Feasibility study for required capital improvements program related to the Huntington Hotel Pasadena (subsequently rebuilt as the Ritz-Carlton Hotel Pasadena, now The Langham). The hotel, owned by a major Japanese investment and development organization, was determined to require major life-safety (earthquake reinforcement) upgrades as well as wide-ranging improvement to guest areas including rooms and restaurants.


Our hotel consulting work included a market study, financial projections, capital improvements budget review, and an investment performance evaluation to justify required capital items. The objective was to determine the overall feasibility of various disposition, reconstruction, or substantial renovation alternatives in connection with a pre-litigation evaluation of Owner’s options.


Hotel later rebuilt as the Ritz-Carlton Huntington Hotel.


Feasibility Study for Affordable Housing Project

Feasibility Study for Affordable Housing Project

Feasibility study for affordable housing project then known as the Rodeo La Cienega Redevelopment Project Area (Cameo Woods) in Los Angeles, California.    Our work as local government real estate consultants included a market study with financial analysis, along with select due diligence review, for the proposed condominium conversion of a 384-unit rental housing community.


The developer for this 27-acre redevelopment project was Hotel del Coronado Corp. (San Diego).   The Community Redevelopment Agency of the City of Los Angeles was the public agency involved with this affordable housing initiative.  The Community Redevelopment Agency of the City of Los Angeles was a local community redevelopment agency that financed and assisted in the development of multifamily affordable housing using local tax monies and federal community development grants. The State of California dissolved all such community redevelopment agencies in June 2011.    When it was first established in 1948, the Community Redevelopment Agency of the City of Los Angeles was dedicated to revitalizing, refurbishing, and renewing economically depressed areas of the City of Los Angeles.


Our project feasibility study was used to support the financing for the project, provided through the State of California SB-99 mortgage revenue bond program.   California law in the 1980’s authorized both state and local governmental entities to issue tax-exempt mortgage revenue bonds (“MRBs”).   The proceeds from the sale of these bonds was used to provide financing for the development of housing at interest rates that were below prevailing market rates.   At the time, State law generally restricted availability of this subsidized financing to low- and moderate-income households.


Subsequent to our feasibility study for this affordable housing project the SB-99 mortgage revenue bonds were issued and the developer proceeded with the condominium conversion of the former apartment community.   The residential community is situated adjacent to the region’s Baldwin Hills community.


Local Government real estate consultants for affordable housing

Our work with local governments includes real estate consulting in connection with affordable and workforce housing programs.

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