Shopoff Realty Investments (“Shopoff”), and The Urban Pacific Group of Companies have created a joint venture partnership to further advance Urban Pacific’s “Urban Town House” (UTH) build-for-rent, multi-generational housing concept.
“The Urban Town House concept is a revolutionary way to tackle the lack of affordable housing for today’s working middle-class families,” explained Scott Choppin, founder and CEO of Urban Pacific. “The unique three-story, five-bedroom, four-bathroom floorplan will capture the ‘forgotten middle,’ or deeply underserved multi-generational, multi-earner household market, providing a more affordable per-bedroom cost option.”
The joint venture raised $10 million of investor capital to complete entitlements on several UTH projects that will ultimately be developed through the joint venture partnership via a series of workforce housing private equity funds. Focusing on the Southern California market, developments will range from 40 to 150 units, with lease rates anticipated to average $3,700 to $4,500 per month.
With Shopoff’s history of investment fundraising and its three decades of real estate development and entitlement experience, coupled with Urban Pacific’s unique and proven housing concept, the two firms have aligned with the goal of scaling the UTH concept.
“Affordability and lack of housing go hand in hand in Southern California,” explained Shopoff President and CEO William A. Shopoff. “The UTH concept gives us an opportunity to fill this void in the market, while also offering investment partners a unique opportunity to support this revolutionary housing concept. We are thrilled to be working with Urban Pacific through this joint venture and anticipate many successful projects to come.”
In Southern California, homeownership has become increasingly difficult with interest rates and prices continuing to rise. The UTH product provides a high-quality alternative to homeownership specifically tailored for the multi-generational, multi-earner family housing market with tenant incomes generally at 80% to 150% of the area median income. With multi-generational living and demand for three-bedroom units at historic highs, the partnership believes the need for the UTH concept will only continue to grow in the coming years.
Having completed its initial capitalization, the company is seeking strategic relationships with interested parties as it seeks new development opportunities throughout Southern California.
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