Investors

TOD Fund

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

Costa Pacific’s Transit Oriented Development Fund focus our investment and development expertise in acquiring existing operating assets and development opportunities within a half mile radius of existing and planned transit stations in the Western United States.

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 in their annual Emerging Trends report. A recent search of the ULI Bookstore turned up no less than 751 publications with some reference to TOD’s. In recent years, real estate publications such as Real Estate Forum, Builder/Developer, Commercial Investment Real Estate, and Commercial Property News have featured numerous articles regarding TOD’s and their development and investment prospects. TOD’s are no longer a niche, but are an industry and investment class all to themselves.

Transit Oriented Developments have very specific requirements and obstacles that many other real estate types are not constrained by. Their mixed use nature makes them more difficult for capital markets to underwrite and fund. Acceptable investment return metrics are often not reached until after traditional investment hold periods. In many locales transit systems are aligned on former heavy rail right of ways and pass through industrial areas where surrounding land uses are not very appealing to new high density mixed use communities. TOD’s often require significant public investment and strong goal oriented Public/Private Partnerships to bridge the initial “performance gap” and carry them to the point of acceptable returns. Transit Oriented Developments have very significant design requirements as well. For a TOD to be successful it must planned to be extremely pedestrian oriented, serve a very diverse demographic spectrum, be designed with durable materials and architecture, and contain a broad and flexible mix of uses.

When all these factors are considered, planned for, and executed correctly the result is the creation of highly desirable places where people can live, work, play, and learn in an community that supports “Smart Growth”, and are sustainable not just environmentally, but socially, and economically.

Seventy percent of the funds capital is allocated to acquiring existing operating assets that include 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 have some sort of value added opportunity, such as underutilized floor-area-ratio, addition 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.