GraceCapital.com News
Financing, Equity & Investments

3rd Quarter
 

A Message from Jonathan Kieswetter
President, Grace Capital Group

We are pleased to announce that Grace Capital Group is now a direct investor. Take a look at two projects under "Noteworthy Closings" that we invested in this year. We also now have access to several "investor pools" for preferred equity. Our primary focus continues to be with small to medium size commercial and residential developers with projects located in the West; primarily California, Arizona, Nevada, and possibly other major metropolitan cities in the sunbelt and Northeast.

Our private investor pools have a broad range of characteristics such as; rates of returns, terms, location and property types so it's difficult to summarize all the various investment strategies other than to provide the following summary of a couple pools;
1. Private fund based in Texas and California that invests with a guaranteed target IRR in the low twenty percent range. Obviously, this is a very favorable IRR but it must be guaranteed by the project. So if the project doesn't achieve its goals, the investor gets their return before the partnership. However, if it's a homerun, then the partnership enjoys higher returns. This is a flexible fund that does not require monthly preferred interest payments so the capital load is less strenuous on the project. This fund is primarily focused in the Southwest and West. They prefer both development and re-position income properties as well as possible land development and residential projects in very strong markets.
2. Private fund in Newport Beach California that has been around for 20 plus years primarily investing in residential land and single family housing projects. They require IRR yields in the thirty percent range and require monthly payments for preferred interest. This is a "typical" fund in pricing terms. Their advantage is they are quick and because of their private ownership, can make decisions on markets that the big guys might struggle with.

Grace Capital as a direct investor will invest in only one or two projects a year and we're looking for those rare opportunities that a "fund" wouldn't do but the returns are so attractive and the business plan so sound that it warrants an investment even though it may be a little off the beaten path.

Inspiration

"When we build, let us think that we build forever. Let it not be for present delight nor for present use alone. Let it be such work as our descendants will thank us for; and let us think, as we lay stone on stone that a time is to come when these stones will be held sacred because our hands have touched them, and that will say, as they look upon the labor and wrought substance of them, See this our father did for us."
-John Ruskin
Author 1819-1900

 


Note Worthy Closings  

Private Investment
Central California
Private equity invested by Grace Capital Group and an investor pool to capitalize the partnership to entitlement of nearly 12,000 acres located in Central California. Land to be developed into Destination Entertainment, Mixed Use and Residential Community.

Private Investment
Goodyear Land Reclamation
Private equity investment by
Grace Capital Group and
debt financing arranged
for the purchase of an existing
30 acre, 65 foot deep "Borrow Pit" located in Goodyear, Arizona; to be filled with clean dirt with an "engineered" fill. Once the pit is capped it will be sold to a home builder.


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