High yield equity shares
Not just subject to the whims of the market.
DJR creates supply. DJR creates opportunity.
Investments are focused on high yield equity shares in relatively small, higher-velocity infill real estate development projects primarily in the greater San Diego region, DJR’s home market. Risk mitigation is sought through delayed leveraging and diversification across multiple projects. Each project is under direct supervision of DJR Companies, sponsor and project manager.
Delayed Leveraging: Investor equity is typically in a first position until construction phases begin as little to zero debt financing is sought until later in the project timeline. This minimizes entitlement risk by ensuring a loan is not coming due during the period when time is most difficult to control, when processing plans with the City. This also mitigates for recessions or even moderate downturns, allowing the opportunity to ride out any downward pressure on pricing (if determined to be the best course of action) before spending additional capital and leveraging.
Multiple Projects, Diversification: Investor capital is spread across multiple projects as opposed to one large development. Smaller projects face less opposition, thus are much quicker to develop and sell, while providing diversification across submarkets with slightly different buyer profiles.
Reduced Competition: Capital is placed in smaller sites that do not compete with large public builders or well-capitalized master developers. Why compete for market space with them? DJR targets real estate development opportunities with total values under $10M.
In-Demand Price Points: First time, move-up, and down-size housing are in high demand and yet supply of “affordable” new housing stock is quite limited. As such, these projects move more quickly and entertain a large pool of potential buyers. It’s part of a risk reducing, profitable strategy with built-in backstops.
Why DJR Companies? DJR differentiates itself by capitalizing on a unique technical expertise in entitling and permitting properties for a more profitable use, simultaneously applying intelligent financial modeling and market analyses. Thus, DJR targets raw land and otherwise underutilized real estate. It’s a space not many target as most do not understand it, and yet builders are seeking entitled land and buyers are seeking property in an undersupplied real estate market. DJR creates supply. Therein lies the opportunity.
Participate in the current DJR Capital offering.
Do you invest only in slow growth company stocks with mature product cycles paying dividends? No, you diversify.
Why do the same with real estate? Hold some cash flowing assets possibly in a large fund or REIT, sure. Yet also invest in growth.
Does a company purchase raw materials and just hope it appreciates? No, it manufactures new product of much a higher value.
That’s how we approach real estate. DJR “manufactures” new product out of its raw material, unentitled land and underutilized real estate. Invest in this value creation process to target risk-mitigated high-yield returns.
Whereas the company’s Project Management capabilities apply across asset type and size, DJR’s own development goal is to opportunistically operate in the space between large development firms and single-unit flippers, focusing on smaller projects with values under $10M. DJR creates new supply for markets with in-demand price points. We value (relative) velocity to minimize risk.
DJR’s vision is to democratize investment in real estate development, moving towards a platform of open investment in high-yield value creation projects through project sponsors whose knowledge of the development process greatly reduces risk.
DJR also develops real estate with uncompromising integrity and innovation, taking an entrepreneurial approach to every aspect of our projects, maximizing value for clients, partners, investors alike while creating ethically defensible work.