Thornton Development Group Investment Models

Through this investment model, TDG buys distressed houses or land with single family zoning to build luxury single family residences with the intent on selling them for a 30%+ profit over and above all-in costs.

TDG typically acquires development opportunities between $1M-$3M with a projected valuation and resale on the completed development between $4M-$10M.

TDG exclusively focuses on A & B areas of Los Angeles with an emphasis in the Hollywood Hills, Beverly Hills, the Valley, and WeHo flats.

Ground up only if the project contains Ready to Issue (RTI) plans or in areas where receiving RTI does not take long (ie: no design review boards etc).

Can justify slightly higher price points in non ULA areas such as Beverly Hills Proper, Malibu, Pasadena, and OC markets.

Through this investment model, TDG buys SB-8 Exempt lots or teardown houses in A & B areas in areas where other multi family development is taking place with at least 25%+ profit over and above all-in costs.

TDG typically acquires development opportunities between $750,000-$2,000,000 with a projected valuation and resale on the completed development between $4M-$8M.

Projects typically built by TDG are 4-6 unit luxury apartment / townhouses with 3-5 BR each unit with select cases of larger 6-14 unit developments.

Will consider buying with Ready to Issue (RTI) plans if priced reasonably otherwise TDG will buy pre-RTI SB-8 Exempt opportunities at a under market value price and entitle the lot to be developed.

In the developments where we build 4 units, TDG will consider the possibility of converting the 4 unit development into a Tenants In Common (TIC) if more profitable (ex: in Santa Monica etc) for sale than selling as a traditional apartment complex.

 

To best leverage the tax benefits of multi family development, TDG will rent out and stabilize the development opportunity, leverage cost segregation for bonus depreciation, and then sell the development via 1031 exchange when eligible.

Through this investment model, TDG will buy teardown multi-family, single family, or land in B & C areas around $500,000-$1,500,000 with 25%+ profit margin over and above all in cost.

TDG typically buys unentitled / pre Ready to Issue (RTI) plan projects but would also purchase projects with RTI plans if priced at below market value.

TDG will collaborate with non-profit partners and city programs (ie: Section 8) to maximize rental income for our projects.

TDG to exclusively develop affordable housing communities that utilize a 80% AMI rental income model and will facilitate construction financing through private lending sources (ie: No LIHTC's, government subsidies, etc).

Buy & Hold play for cost seg benefit, eventually sell project(s) down the line.

In this investment model, TDG will buy 2-4 unit existing apartments in A or B+ areas of Los Angeles around $1M-$2M to convert them into TIC communities and sell the shares totaling a 25%+ over and above all-in costs profit.

To facilitate the TIC, TDG will either Ellis Act or negotiate buyouts of existing tenants, in which once the building is vacated will renovate the entire property, convert the units into TIC, and then sell each unit to buyers.

Typical TIC areas of focus are Culver City, Venice, Santa Monica, Silver Lake, Brentwood, and Los Feliz.

Through this model, TDG may also convert newly constructed 4 unit development projects built by TDG into TIC.

Fix and flip or buy/hold for cost seg and then sell when eligible for 1031x.