SACRAMENTO, CA – 29th Street Capital has expanded its development and construction team to better align with the multifamily investment firm’s strategies.
The firm, which recently expanded its development team, has now added an internal construction division with an in-house General Contractor. The strategy will help 29SC target new projects in opportunity zones, which are census tracts the federal government designated as distressed areas. Investments in related opportunity funds can yield significant capital gains benefits to long-term investors.
Kevin M. Smith, Senior Vice President of Development for Northern California, who joined last year, is responsible for all facets of the team’s multifamily development activity. In addition to Smith, 29SC this year added Fred Holz as Vice President of Development – Planning and Engineering, and licensed contractor Jeff Brown as Vice President of Development – Construction.
29SC is leveraging its national platform to source potential development opportunities. As a wholly-controlled and single-customer construction company, 29th Street Construction allows the team to deliver developments at completion with an additional 5% cushion on hard costs to ensure overall budgets and schedules are met for completing infrastructure and multifamily communities.
“We are already seeing the benefits of the combined platform at our two current OZ development projects,” said 29th Street Capital Managing Director Robert Bollhoffer. “The team has a proven track record of executing on a wide variety of development projects and we are excited to grow this platform.”
The new team already has roughly 3,000 units underway or in the pipeline in two large developments within opportunity zones in downtown Sacramento. The first project, a 752-unit multifamily community in The Mill at Broadway, broke ground in 2019. The newest project, Township 9, is expected to begin this fall. It will consist of 936 multifamily units with access to a private clubhouse, community rooms, and a fitness center. 29SC owns the remaining 18.3 net acres in the Township 9 master project and expects to develop roughly 1,400 multifamily units in later phases.
“The disruption caused by COVID-19 actually helped us recruit high-quality staff to our team,” Smith stated. “As much as it pains me to say it, the team does have over 100+ years of combined experience.”
Formed in 2009, 29th Street Capital is a privately held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers. Over the past 12 months, 29th Street Capital has also acquired 16 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S. 29SC’s conventional multifamily portfolio currently consists of more than 10,700 units having acquired over 18,000 units across its 15 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms. Learn more about 29SC at 29thstreetcapital.com