H.G. Fenton Spawns New Investment Entity

SAN DIEGO-In a move that company officials see as a natural progression of the firm, H.G. Fenton Co. has spawned a new investment entity targeting new development projects and value-added opportunities throughout San Diego County.The recently formed group, known as Fenton Investment Co., plans to provide equity for a range of product types, including industrial, office, residential and retail. “We’re pretty open to product type,” says Robert Gottlieb, chief financial officer with H.G. Fenton Co., explaining that each project will be evaluated on a case-by-case basis. He tells GlobeSt.com that Fenton Investment Co.’s goal is to invest in projects that are consistent with H.G. Fenton’s business philosophy, which centers on adding value to the community. “H.G. Fenton has been around for about 100 years and we’ve always been really focused on the community,” Gottlieb says. “It’s pretty much a natural transition, in that we’re currently developing and adding value to the community,” he points out, noting that “this is just a way to branch out further and leverage ourselves to work with other developers.” The new entity does not have a targeted amount of funds to spend, nor a set number of projects to target. The formation of Fenton Investment Co. has been a “smooth transition” for H.G. Fenton, according to Gottlieb. With its background as a developer, owner and manager, the firm already understands the San Diego real estate landscape, so adding another partner to the mix is not anticipated to cause any significant complications. “It’s the same thought process,” Gottlieb says of the investment side of the real estate business. “In this case, we’d be working with another partner or venture, as opposed to doing it strictly ourselves.” Fenton Investment Co. has already closed its first deal, an equity investment for 66 single homes that Davidson Communities is building in 4S Ranch.H.G. Fenton, which counts about 80 employees total, has not added any new personnel as a result of the new entity. Gottlieb tells GlobeSt.com that the firm currently has sufficient human resources to handle the venture, but that the company has not ruled out the possibility of new hires in the future.