Investors

TOD Fund

Costa Pacific Transit Oriented Developments: a great opportunity for residents, and investors.

Transit Oriented Developments, or TODs, offer residents the kind of convenient mixed-use lifestyle that is becoming increasingly popular in the U.S. due to rising gas bills, higher concern for the natural environment, and overall desire for more free time. In fact, for the past three years, ULI and Price Waterhouse Coopers have listed Transit Oriented Development (TOD) as one of the fastest growing development and investment sectors. And prominent real estate publications such as Real Estate Forum, Builder/Developer, Commercial Investment Real Estate, and Commercial Property News have featured numerous articles regarding TODs and their development and investment prospects. And even though TODs are no longer a niche, they have become an industry and investment class all to themselves.

For this reason and many others, Costa Pacific's Transit Oriented Development Fund will focus its investment and development expertise in acquiring existing development opportunities within a half-mile radius of existing and planned transit stations in the Western United States.

Costa Pacific is well aware of the specific requirements and obstacles that come with TOD communities that most other real estate types are not constrained by:

  • A TOD's mixed-use nature makes it more difficult for capital markets to underwrite and fund, so acceptable investment return metrics are often not reached until after traditional investment hold periods
  • In many locales, transit systems pass through industrial areas where surrounding land uses are not very appealing to new high-density, mixed-use communities
  • TODs often require significant public investment, and strong goal-oriented Public/Private Partnerships carry them to the point of acceptable returns
  • Successful TODs have very significant design requirements, such as:
    • Pedestrian-oriented design
    • Diverse demographic spectrum
    • Design that utilizes durable materials and architecture
    • Broad and flexible mix of uses
When all these factors are considered, planned for, and executed correctly, the result are highly desirable places where people can live, work, play, and learn in communities that support "Smart Growth," and are sustainable not just environmentally, but socially and economically.

The Fund will devote at least 70% of the funds capital to acquiring existing multi-family, office, retail, and industrial product types at or near transit stations in states of Washington, Oregon, California, Arizona, Utah, Colorado, and Texas. Many of the properties may already have some sort of value added opportunity, such as underutilized floor-area-ratio, additional developable land, or rehabilitation of the existing structure to capture additional value. The balance of the funds capital will be deployed in the development of new mixed-use Transit Oriented Developments.