ColRich Forms Joint Venture With Resmark

SAN DIEGO-Locally based ColRich Group and Los Angeles-based Resmark Equity Partners have teamed up in a joint venture to pursue condo conversion opportunities throughout the Western US. The new venture, to be known as ColRich Residential LLC, will have access to more than $175 million in equity for the development projects. For starters, the company will look at potential conversion deals in California, Nevada, Arizona and Washington.”With the growing lack of affordability in many regions, we believe conversions are no longer a cyclical play,” says Danny Gabriel, chief investment officer and co-president of ColRich. He believes condo conversions will become a consistent play in meeting housing needs.The two companies have formed other partnerships over the past five years, with the venture’s relying on ColRich’s development skills and Resmark’s transactional expertise. “This joint venture will enable ColRich to capitalize on the increasing demand for more affordable attached housing,” adds Gabriel.The new venture has a specific plan, according to Resmark president Robert N. Goodman. “Initially, we will look to acquire communities with 100-plus units located in mature markets where there is a sizable pricing gap between attached for-sale homes and detached single-family homes,” says Goodman. He points to earlier examples of ColRich conversions including the 200-unit Bernardo Pines in Rancho Bernardo and the acquisition of a 400-unit multifamily project in Roseville. In that property, ColRich Residential LLC has already begun conversion plans with sales set for March 2005.Founded in 1995, Resmark invests and manages funds devoted to for-sale residential development on behalf of the California Public Employees’ Retirement System (CalPERS). During that time, Resmark has originated and managed more than 300 residential investments in 14 states representing more than 70,000 units. Besides it Los Angeles corporate headquarters, Resmark has satellite offices in San Diego and Sacramento. The company counts equity commitments of more than $700 million and total capital of more than $1.1 billion.