SoCal Multifamily Investor Closes Latest Microfund

By Dees Stribling, Contributing Editor

Long Beach, Calif.—Beach Front Properties has closed of its Beach Front Vintage 2014 Fund, which opened for investment 16 months ago and is the firm’s 23rd microfund since its founding in 1997. Microfunds are generally considered funds ranging between $1 million and $20 million.

Beach Front’s latest fund will concentrate investments in nearby Long Beach, as well as areas near downtown Los Angeles and the South Bay, including Wilmington, San Pedro and Hawthorne. The firm focuses primarily on multifamily properties, although it also invests opportunistically in other property types as well.

The firm is international in scope. In addition to Southern California, previous funds have made investments in properties in Austin; Atlanta and other parts of Georgia; Shanghai; and Berlin (Mitte, Schoneberg and Charlottenberg).

Beach Front is managed by co-founder Kyle Kazan, a former law enforcement officer who later became proficient in repositioning troubled assets with the goal of achieving high occupancy and above-market rents. Early in the firm’s history, Kazan said he realized that high-performance property management was an important part of the return equation, so he established Beach Front Property Management Inc. to service the firm’s portfolio and later those of third-party clients.

Kazan noted that 77 percent of the latest fund’s limited partners are repeat investors. “We’re confident in the existing portfolio, given our historical average internal rate of return of 19 percent,” he confirmed.