Golden Gateway
SAN FRANCISCO, CALIFORNIA, USA
The Golden Gateway is an impressive mixed used development spanning 3 square blocks of downtown San Francisco and includes 4 residential towers and 58 town homes totalling 1,254 rental units. Majime Partners saw this opportunity in 1991 and invested to take up a 12% share. Through the years, our investors have enjoyed astronomic property value growth and stable distribution every year. This has become a trophy asset and has amazingly distributed close to 30x our initial investment via rental income and continuous successful refinance programs throughout the years.
For more information please see our website:
http://www.thegateway.com
28 & 30 Liberty Ship Way
SAUSILITO, CALIFORNIA, USA
Majime Partners invested in the repositioning of 2 light industrial warehouses in the downtown area of this budding affluent neighbourhood just across the Golden Gate Bridge from San Francisco. Completely redeveloped, we transformed these properties into 52,976 net rentable square feet of newly developed Class A offices. Today we enjoy 100% occupancy from multiple tenants providing generous cash flow and frequent refinancing of equity every 2-3 years.
1440 Chapin
BURLINGAME, CALIFORNIA, USA
Similar to the Sausalito City story, Majime Partners saw an opportunity in the commercial core area of this suburb located between San Francisco and Silicon Valley. We quickly acted on the chance to acquire this newly developed 46,352 square foot office complex when the developers needed a fast sale. We have maintained great relations with the developers who have stayed on to manage the building for us at near 100% occupancy. Only recently they found us new buyers and helped us to sell at a great uplift to initial purchase.
34 Peachtree
ATLANTA, GEORGIA, USA
Majime Partners invested to take up a more than 25% shareholdings and 50% control of the board member seats in this 30 story commercial office block with the intention to lease up quickly and go on to resell for an attractive cap rate based on the higher yield. However, through the years, developers who see value in the repositioning of the asset have been approaching us with buy out offers. While the property maintains cash flow, we have enjoyed exploring the repositioning of the building and continue to engage with developers to derive the best deal for our investors.
Multi Family Residential Developments
LOS ANGELES, CALIFORNIA, USA
Majime Partners has provided numerous structured finance packages to our network of developers in the Los Angeles region. Our developments are concentrated in the Westside of LA where residents have the highest GDP, lowest unemployment, and are most educated. We prefer districts we ourselves would want to live which includes a high concentration of shopping streets, restaurants, entertainment, acclaimed cultural attractions and top universities such as UCLA and USC.
Advantages of lending to small, urban developers:
Reasonable Loan-to-Value. As a lender, the margin of safety is determined largely by the difference between a property’s value and the loan you provide on that property so our developers always have more than 40% of the equity behind our first and second lien positions.
Relatively Short Duration. Loans to small residential developers normally have a maturity of less than two years. This allows the developer time to build or redevelop the property — and either sell the property as a whole, or sell the individual units.
Attractive Yield. Because small urban projects often have strong profit margins, together with a scarcity of lenders, the market features relatively high interest rates. As of mid-2016, construction and renovation loans typically feature interest rates in the 8.5–9.9% range.
We continue to see good opportunities there and will remain focused on this as one of our core markets.