SCE OPPORTUNISTIC
FUND
SCE OPPORTUNISTIC
FUND
The Partners have provided unique independent capital investment management directly into sophisticated institutional private equity real estate sponsors and developers through multiple market cycles. This unique multidisciplinary capital deployment system has provided critical insights for a broad range of GPs navigating the unique needs of commercial occupiers in the innovation economy.
Southern California Equity is the logical expansion from decades of experience providing independent investment management and fiduciary strategy directly into established private equity platforms. Continuing that legacy, we launched a transformative general partnership targeting the fragmented middle market, in high-growth, innovation-led cities with in-demand niche property types, Class A Low Rise Creative Flex Space
PURPOSE:
The fund acquires underperforming urban infill properties, in high growth markets, then executes our exclusive low-carbon, 'Deep Reposition Method'. The vertically integrated platform, leverages in-house expertise to source and transform assets into premium products, optimize leasing, enhance property management, to create opportunistic value and deliver Alpha returns.
VALUE PROPOSITION:
Our proprietary technology, combined with low carbon adaptive reuse strategies, adds value through operational expertise, rather than relying on financial engineering. We create green properties on an accelerated schedule, at lower costs, targeting premium occupiers, unlocking the time value of capital.
OBJECTIVE:
SCE is an impact driven enterprise that delivers superior risk-adjusted returns, emphasizing downside protection, promoting the rewards of sustainable building practices, and reimagining green real estate.
01
The “Acquisition Targeting System”, our dynamic financial modeling revolutionizes the way our asset managers, analysts, and brokers collaborate around acquisitions and pipeline management. Allowing us to focus on an undiscovered asset class proven to outperform typical undervalued assets
02
Our proprietary "Instant Appreciation Algorithm" applied with our unique adaptive reuse strategies, "The Deep Reposition Method" allows us to rapidly elevate asset class, optimize to the most in demand use, and significantly increase cash flows. We create opportunistic value in an accelerated development cycle.
03
The "Deep Repositioning Method" is a more sustainable building practice, conserving resources and reducing carbon emissions. We create modern decarbonised workspaces. targeting occupiers with aggressive low carbon mandates. We breathe new life into overlooked opportunities, creating transformative and lucrative ventures.
04
The "Vertically Integrated Platform” allows us to provide unparalleled operational excellence. Our highly talented in-house team controls all the disciplines necessary to eliminate risk, liability and delay. Fiduciary Management, Acquisition, Regulation, Development, Architecture, Construction, and Leasing + Management.
The Fund is an evolution from our groundbreaking affiliate, Southern California Land Use (SCLU). Developed from our unprecedented multidisciplinary system providing independent investment management, strategic intelligence and financial strategy for a diverse range of GP’s.
From this insider perspective, we foster an acute understanding of investors' priorities and challenges. This in-house insight empowers Southern California Equity with the wisdom and agility required to drive superior investor value.
With a singular focus, local market knowledge, institutional approach, experienced hands-on management and investment teams the Fund provides a unique vertically integrated platform.
The investment platform is inspired by our revolutionary approach to adaptive reuse. The General Partner holds a strong conviction that today’s private real estate investing demands greater operational excellence, deeper property-level expertise, and disciplined asset management—surpassing the financial engineering strategies typical of prior vintages. The Fund will leverage the Partners’ comprehensive expertise to deliver expertly operated assets targeted for in demand, specialty property types. By repurposing these properties and elevating their asset class, we breathe new life into neglected and overlooked opportunities—creating transformative and lucrative ventures.
Deep Reposition with New Second Floor
Deep Reposition with New Mezzanine
Deep Reposition for Biotech Medical
SCE expertise is releasing value in underperforming urban infill assets by executing our exclusive Deep Reposition Method. This platform is built on a distinctive in-house deal sourcing track record, strategically positioned to generate opportunistic value by creating premier workplaces that benefit from a green and sustainable premium.
The Fund targets market inefficiencies and underdeveloped, operationally intensive niches characterized by supply-demand imbalances. Our performance track record is well established in Class A low-rise, technology-oriented creative flex space, and premium property types that command elevated rents and demonstrate positive net absorption.
We target investments in high-growth, technology-oriented markets that exhibit low correlation to the broader economy, delivering strong performance through resilient property types—even during economic downturns.
01
Non-traditional property class, requiring specialized knowledge that presents barriers to entry and elevates operational expertise
We house the innovation economy providing world class working environments for creators
Entertainment Production Campus, Digital Media, Digital Gaming Studios, eCommerce Centric Flex Space, Medical Biotech, Flex Creative Office
Well located Premium Class A Low Rise Creative Flex Space that is in high demand
Sector focus makes us smarter investors and specialization is a competitive advantage
02
Fragmented Upper Middle Market; targeting deals of $20M-$50M
Less competition; deals are under the institutional buyer radar and beyond the smaller investor
Existing urban cores, established urban centers and "Next-Neighborhoods" - emerging submarkets with strong macro economics
High quality specialty use property class experiencing positive net absorption with the pipeline of new supply at all time lows
Low correlation to the broader economy with strong performance throughout downturns
03
Los Angeles | Austin | Nashville | Miami
We target epicenters of innovation because they attract and retain the population and wealth necessary for well performing resilient markets
Innovation Led Cities (ILC) sustain tenant demand, support rental levels, capital values, and ultimately returns for investors.
Capitalize on the "Clustering Effect" of innovative companies in similar industries and their preference to locate near each other, leading universities and research institutes
This category of occupiers are increasing mandates for a low carbon workplace, a strategic advantage for adaptive reuse real estate.
04
"Deep Reposition Method" optimizes returns by harnessing the advantages of asset use over asset design; mitigates risk, minimizes liability, decreases cost, and accelerates transaction velocity
Low carbon development strategy targets distressed and underutilized assets, repositioning them into modern, sustainable properties with high demand specialty uses
Assets have significantly repriced and can be acquired at very favorable basis, to elevate asset class and create value
Capitalize on the changing market that prioritizes real estate skills to increase cash flow and asset value, rather than relying on financial engineering and market dynamics
Our acquisition pipeline remains extremely robust with very attractive opportunities. We are poised to exploit the macroeconomic conditions and reset valuations that are driving market dislocation. Our proprietary data driven technology, the “Acquisition Targeting System”, a dynamic financial modeling program revolutionizes the way our asset managers, analysts, and brokers collaborate around acquisition, and pipeline management. This allows us to identify undiscovered assets proven to outperform typical undervalued assets.
TOURED AND TARGETED
(Deep Repositioning Potential)
THE INVESTMENT STRATEGY IS TO; ACQUIRE, CHANGE USE & ADD SQ.FT.
THERE ARE CURRENTLY 91 PARKING (REQ. & SURPLUS) STALLS
GENERALIZED RESTRICTIONS IN THE AREA REQUIRE SPECIALIZED KNOWLEDGE TO MAXIMIZE VALUE
21% ADDITIONAL SF
(UNLEVERAGED) IRR 28%
TOURED AND TARGETED
(Deep Repositioning Potential)
THE INVESTMENT STRATEGY IS TO; ACQUIRE, CHANGE USE & ADD SQ.FT.
BUILDING IS CURRENTLY LEASED FOR MANUFACTURING
BUILDING ADDITION OF UP TO 4,093 SF EXCLUDING NEW PATIO AND DECK AREAS. TOTALING 18,493 SF
22% ADDITIONAL SF
(UNLEVERAGED) IRR 28%
TOURED AND TARGETED
(Deep Repositioning Potential)
THE INVESTMENT STRATEGY IS TO; ACQUIRE, CHANGE USE & ADD SQ.FT.
THERE ARE CURRENTLY 8 REQUIRED (AND 4 SURPLUS) PARKING STALLS
ASSET IS LOCATED IN EXPANDING MEDIA PRODUCTION CORRIDOR CULVER CITY ADJACENT
22% ADDITIONAL SF
(UNLEVERAGED) IRR 30%
PREFERRED RETURN
7%
PROJECTED IRR
23%
PROJECTED ROI
40%
MANAGEMENT FEES
<2%
INVESTMENT PERIOD
5 Years
OFFERING
$500 MM - $1 BIL
TARGET DEAL SIZE
$20 MIL - $50 MIL
PROPERTY TYPE
Entertainment / Biotech
TARGET MARKETS
LA, Austin, Nashville, Miami
MAXIMUM LEVERAGE
65%
Get an insiders view from investors, general partners, developers, advisory brokers, architects and real estate attorneys on how Southern California Equity creates and maintains value. Insightful interviews will provide an in depth perspective on how we cracked the code, to upgrade assets to the highest and best property use.
"We pride ourselves on partners that take a market agnostic approach to dealing with whatever problem, dealing with whatever scenario or situation we encounter in any city... One of the best things about Daren is he brings such a creative and unique approach... and it provides so much value to a project and to us as a company, to have a single source whenever we encounter something, and know that he has the expertise and experience to deal with it."
"Adaptive re-use is a very nuanced process. Its specific to each asset and it takes someone like Daren to understand the history and what you're trying to do in the future, and thats important... Daren and his team in regards to a project schedule and what they add to it is extremely important. As a developer time can be your enemy."
"One of the issues that faces developers is how to take an existing property and turn it into an economic opportunity. What often stand in their way are a lot of requirements. Daren is someone who can really navigate the process to actually turn an older building into a viable economic enterprise."
Co-Founder
Co-Founder
Officer
Relations
The fund management team collective experience is over 100s of years, and has delivered a market edge for investors across multiple cycles and is experienced in managing real estate through surges, downturns and distressed situations. Our singular focus, extensive market knowledge, institutional approach, experienced hands-on management and investment teams, provide a platform for sophisticated investors to access a traditionally fragmented asset class with a partner who drives consistent returns.
These are speculative securities. this offering involves certain risks. This confidential offering memorandum (this “memorandum”) has been prepared solely for, and is being delivered on a confidential basis to, prospective investors considering the purchase of units (the “units”) in sce opportunistic fund 2024 lp (the “partnership”). The units are being offered only to accredited investors as that term is defined in rule 501(a) under regulation d of the securities act of 1933 (“securities act”), in reliance on rule 506(c) thereof, unless otherwise determined by the partnership. In addition, the issuance of the units has not been and will not be qualified under any state securities laws (collectively, the “state acts”), in reliance upon one or more exemptions from registration provided by the securities act and the state acts.
All prospective investors are urged to read and carefully consider the risks associated with this investment. Such risks are explained in the “risk factors” section of the memorandum. There are income tax risks associated with the ownership of the units. The internal revenue service has not been requested to issue any rulings concerning any tax implication of this offering, nor will the internal revenue service be requested to issue any such rulings. There are also other risks associated with an investment in the units. An investor may be unable to liquidate such investor’s investment quickly or on acceptable terms, if at all, in the event such investor should desire to do so. The purchase of units should be considered only by persons who can bear the economic risk of the investment for an indefinite period of time and can afford a total loss of their investment. This investment is speculative and involves a high degree of risk.
This memorandum does not constitute an offer to sell or the solicitation of an offer to purchase the units in any state or other jurisdiction in which such an offer to sell or solicitation of an offer to purchase is not authorized. The units may not be sold, transferred, pledged, hypothecated or otherwise disposed of in the absence of either an effective registration statement registering the units both under the securities act and under applicable state acts or an opinion of counsel satisfactory to the general partner and its counsel that such registration is not required. The transfer of the units is further restricted under the terms of the partnership’s limited partnership agreement, a copy of which is on file with the partnership. Prospective investors are not to construe the contents of this memorandum or any communication relating to this offering as investment advice, legal advice or tax advice. Each investor should consult such investor’s own lawyer, accountant and/or other professional advisors as to legal, business, tax and related implications of making an investment in the partnership.
No person has been authorized to make representations, or give any information with respect to the partnership, except as contained in this memorandum. Any representations other than those set forth in this memorandum, any supplements hereto and any information contained in documents furnished by the partnership are unauthorized and should not be relied upon.
Certain information contained herein concerning performance is based on or derived from information provided by independent third-party sources. The general partner believes that such information is accurate and that the sources from which they have been obtained are reliable. However, neither the general partner nor the partnership can guarantee the accuracy of such information, and neither has independently verified the assumptions on which such information are based. No representations or warranties of any kind are made or intended, and none should be inferred, with respect to the economic return or the tax consequences from an investment in the partnership. No assurance can be given that existing laws will not be changed or interpreted adversely. Prospective investors are not to construe this presentation as legal or tax advice. Each investor should consult his, her or its own counsel and accountant for advice concerning the various legal, tax, erisa and economic matters concerning his, her or its investment.
Forward looking statements: This memorandum contains forward looking statements based on the general partner’s experience and expectations about the markets in which the partnership invests and the methods by which the general partner expects to cause the partnership to invest in those markets. Those statements are sometimes indicated by words such as “expects,” “believes,” “seeks,” “may,” “intends,” “attempts,” “will” and similar expressions. Those forward-looking statements are not guaranties of future performance and are subject to many risks, uncertainties and assumptions that are difficult to predict. Therefore, actual returns could be much lower than those expressed or implied in any forward looking statements as a result of various factors. The section titled “risk factors” in the memorandum discusses some of the important risk factors that may affect the partnership’s returns. Neither the partnership nor the general partner has any obligation to revise or update any forward looking statement for any reason.
Not a Contract or Terms of Agreement
This landing page is to outline the principle deal points and has been prepared based on the Private Placement Memorandum (PPM) and Limited Partnership (LP) agreement of SCE Opportunistic Fund 2024. This landing page is intended only for informational purposes of Placement Agents (PA) and/or Capital Acquisition Brokers (CAB). This page is confidential and NOT for use or distribution to Accredited Investors for consideration to purchase Units in any SCE Fund LP. Southern California Equity Inc. (SCE) reserves the right to modify or terminate the information outlined herein.