New Capital for Garden-Style Development
LA-based Dekel Strategic Investors is looking for shovel-ready developments to fund. In just 45 days, it has closed $19M of JV financing for three Class-A apartment projects in Texas. The new arm of LA-based Dekel Capital, it was formed to provide JV equity--from $3M to $10M--to multifamily and retail developments. (It works in partnership with Mountain Capital Partners, and aims to place $50M of equity in its first year of operation.) Managing principal Shlomi Ronen (with his wife and two of his three daughters) tells us DSI selects shovel-ready, garden-style developments because they typically begin leasing within nine months, minimizing lease-up risk.
The three latest projects: a 264-unit development in Pasadena (called Crenshaw Grand Apartments), 740 units in Allen and 252 units in San Antonio. Shlomi says it’s easy to be turned off by Houston's pipeline, but a submarket by submarket analysis drew his attention to Pasadena. He’s seeing lots of multifamily demand from the Port, and the City of Pasadena has historically limited multifamily, which has created a very supply-constrained market. Only one other project has been built there recently, and it’s already stabilized. The site is part of a rapidly growing employment area and benefits from regional amenities, Shlomi says, including nearby MOB and retail.