Santa Ana Westview's transformation underscores the power of strategic innovation and resilience, turning challenges into high-return investment opportunities.
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The Challenge
Primior was faced with the task of developing Santa Ana Westview, a retail center in an Opportunity Zone in Santa Ana, a location not typically desired for development due to its complex political climate and high city staff turnover, making planning and development extremely challenging.
Despite these challenges, Primior saw an opportunity to create a lucrative investment in an area bustling with potential and took on the project in Q4 2018.
The Approach
Primior immediately started the entitlement process with Chase Bank as the anchor tenant. The pre-signed lease with a national bank significantly reduced development risk, allowing Primior to focus on marketing the development opportunity to local and national tenants and brokers.
In late 2019, a local affordable housing developer approached Primior. Recognizing the potential for a mutually beneficial arrangement, Primior decided to collaborate with the developer while continuing with their development plan. After careful consideration, Primior chose the optimal strategy: selling the property to the affordable housing developer as is, turning what could have been a challenging project into a winning investment.
The Outcome
The outcome was a win-win situation for all parties involved. Primior was able to achieve a Realized Internal Rate of Return (IRR) of 37.08%. The sale of the property enabled the equity investors to realize their desired return on investment in a shorter timeframe than anticipated, which allowed them to rapidly redeploy their capital into other projects.
With a capitalization of $5,000,000 and a Preferred Equity structure, this case study serves as a testament to Primior’s ability to navigate complex environments and turn challenges into opportunities. The company’s adaptability, risk management strategy, and ability to recognize and act on profitable opportunities were the key drivers of this successful investment.
