RAD identified certain areas of Venice as ripe for gentrification.
Many other developers believed gang activity in the community
would preclude success. We were introduced to the owner of
an underutilized 16,000 square foot lot, previously used
as a railroad right-of-way, with a common vision.
RAD desired to overcome the various hurdles to developing the
parcel, but was cautious to avoid uncalculated risks. The
owner wanted to sell his property for a price that we considered
to be above market given the risks associated with being
a first mover in the area.
RAD successfully negotiated a creative purchase agreement
whereby the seller retained the majority of the risk for
the property’s future success in exchange for participating
in its upside. The project was comprised of 16 artist-loft condominiums
in 19,200 square feet of open-plan live/work spaces. The seller received the full
payout on his participation. RAD justified our premise about