TriWest Development is a residential real estate investment and development company focused on value-add properties in Los Angeles County. TWD invests in prime coastal locations with strong fundamentals, established markets, and proven demand. The firm has purchased, built, and sold over 200 properties since inception with a strong track record of success. TWD’s current portfolio consists of premier real estate with a value of over $300MM. TriWest Development has a strong focus on the South Bay and is the largest home builder in Manhattan Beach / Hermosa Beach.
Sales Comparables
Property Address | City | Bed / Bath | Bldg Size | Lot Size | Year Built | Sale Price | Date Sold | Price/SqFt | Notes |
931 1st Street | Manhattan Beach | 6 Bed / 8 Bath | 7,750 SF | 9,595 SF | 2025 | $17,000,000 | SUBJECT | $2,194 | SUBJECT PROPERTY - Ocean Views, Flat Lot, Premier Street |
1001 1st Street(1) | Manhattan Beach | 6 Bed / 9 Bath | 9,479 SF | 9,370 SF | 2021 | $24,995,000 | ACTIVE | $2,637 | ACTIVE - Same Street, One Block East, Superior Views, Pool In Front Yard, Undesirable Floorplan |
809 Highview Ave | Manhattan Beach | 5 Bed / 6 Bath | 8,137 SF | 13,939 SF | 2012 | $20,999,999 | Sep-22 | $2,580 | Built ~12 Yrs Ago, Larger Lot, Superior Views |
100 N Dianthus Street(1) | Manhattan Beach | 6 Bed / 9 Bath | 8,777 SF | 9,370 SF | 2021 | $19,598,500 | Dec-21 | $2,232 | Same Street, One Block East, Superior Views, Rehab Project, Pool in Front Yard, Undesirable Floorplan |
934 1st Street | Manhattan Beach | 6 Bed / 9 Bath | 6,874 SF | 10,160 SF | 2019 | $16,850,000 | ACTIVE | $2,451 | ACTIVE - Across the Street, Build ~4 Yrs Ago, Smaller Home |
310 John Street | Manhattan Beach | 3 Bed / 4 Bath | 5,097 SF | 9,979 SF | 1994 | $11,200,000 | May-21 | $2,197 | Built ~30 Yrs Ago, Sloped Lot, Sold 3 Yrs Ago |
818 8th Street | Manhattan Beach | 5 Bed / 6 Bath | 6,393 SF | 9,949 SF | 2000 | $12,738,290 | Jul-21 | $1,992 | Built ~23 Yrs Ago, Smaller Home, Sold 3 Yrs Ago |
612 John Street | Manhattan Beach | 6 Bed / 8 Bath | 7,398 SF | 9,983 SF | 2000 | $12,850,000 | Aug-18 | $1,736 | Built ~23 Yrs Ago, Sloped Lot, Sold 5 Yrs Ago |
818 18th Street | Manhattan Beach | 5 Bed / 6 Bath | 4,500 SF | 10,395 SF | 2025 | $12,500,000 | PRESOLD | $2,777 | TriWest Build, Tree Section, No Views, Smaller Home, Presold with Forward Sale Contract |
704 Pacific Ave | Manhattan Beach | 6 Bed / 7 Bath | 5,214 SF | 8,962 SF | 1997 | $11,000,000 | Dec-20 | $2,109 | Built ~26 Yrs Ago, Sloped Lot, Smaller Home, Sold 4 Years Ago |
817 Pacific Ave | Manhattan Beach | 5 Bed / 6 Bath | 4,300 SF | 6,245 SF | 2024 | $10,500,000 | PRESOLD | $2,441 | TriWest Build, Smaller Lot, Smaller Home, Inferior Views, Presold with Forward Sale Contract |
501 John Street | Manhattan Beach | 5 Bed / 8 Bath | 5,725 SF | 10,620 SF | 1987 | $10,500,000 | May-23 | LAND | LAND – Sold to Jared Goff, will combine with 819 5th & build new |
819 5th Street | Manhattan Beach | 4 Bed / 4 Bath | 3,532 SF | 9,981 SF | 1952 | $8,575,000 | Nov-23 | LAND | LAND – Sold to Jared Goff, will combine with 501 John & build new |
856 5th Street | Manhattan Beach | 3 Bed / 4 Bath | 4,400 SF | 5,704 SF | 1980 | $5,244,000 | Mar-24 | LAND | LAND - Sold to Owner/Builder, Smaller Lot, Inferior Views |
522 24th Place | Hermosa Beach | 5 Bed / 7 Bath | 7,200 SF | 12,196 SF | 2021 | $15,750,000 | Apr-23 | $2,187 | Hermosa - Inferior Location, Larger Lot |
2127 Power Street | Hermosa Beach | 5 Bed / 6 Bath | 5,230 SF | 21,344 SF | 2016 | $12,400,000 | Sep-23 | $2,370 | Hermosa - Inferior Location, Larger Lot, Smaller Home |
2900 Tennyson Place | Hermosa Beach | 3 Bed / 4 Bath | 2,785 SF | 14,810 SF | 1946 | $15,350,000 | Jan-24 | LAND | Hermosa – LAND, Larger Lot, Sold to Adjacent Neighbor |
Average w/o Subject Property | $2,309 |
(1) Same property as house is located on a corner lot and both 1001 1st Street and 100 N Dianthus Street have been used as its address.
Sources of Funds | Amount |
Senior Loan | $7,475,000 |
LP Equity(1) | $4,265,724 |
GP Equity(2) | $581,690 |
Total Sources of Funds | $12,322,414 |
Uses of Funds | Amount |
Purchase Price | $5,900,000 |
Project Fees(3) | $343,000 |
Soft Costs | $335,167 |
Financing Costs | $1,094,247 |
Hard Costs(4) | $4,650,000 |
Total Uses of Funds | $12,322,414 |
(1) $630,000 of the LP Equity will be coming from the General Contractor principals.
(2) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(3) Payable to the Sponsor.
(4) Includes a 10% contingency.
The expected terms of the debt financing are as follows:
Senior Debt
- Lender: Genesis Capital, LLC
- Loan Amount: $7,475,000
- Loan-To-Cost (LTC): 61%
- Loan Type: Construction Loan
- Interest Rate Type: Floating
- Interest Rate: 5.00% + 30-Day SOFR (Floor Rate of 9.82968%)
- Interest-Only Period: 24 Months
- Loan Term: 24 Months
- Recourse Description: Completion Guarantee
- Extension Options: Up to two extensions may be available at the sole discretion of Lender
- Prepayment Terms: No terms, no penalty on prepayment
(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt.
TriWest Development intends to make distributions as follows:
- Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors receive a Preferred Return of 8.0% IRR;
- 60% / 40% (60% to Equity Investors / 40% to Promoted/Carried Interest) of all cash flow available for distribution thereafter.
TriWest Development intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).
Distributions are expected to start in April 2026 with the sale of the Property. Distributions are at the discretion of TriWest Development, who may decide to delay distributions for any reason, including maintenance or capital reserves.
TriWest Development will receive a promoted/carried interest as indicated above.
You will pay certain fees over the life of the transaction; please refer to Diversified Properties, LLC's materials for details. The following fees and compensation will be paid(1)(2):
One-Time Fees
Type of Fee | Amount of Fee | Received By | Paid From |
Acquisition Fee | 1.00% of Purchase Price | TriWest Development | Capitalization |
Guarantee Fee | 1.00% of Loan Proceeds | TriWest Development | Capitalization |
Platform Fee | Flat One-Time Fee of $15,000 | RM Securities, LLC | Capitalized Equity Contribution |
Placement Fee(2) | 4.00% of the Raised Amount up to $2 million, plus 3.50% of the Raised Amount in excess of $2 million. | RM Securities, LLC | Capitalized Equity Contribution |
Recurring Fees
Type of Fee | Amount of Fee | Received By | Paid From |
Construction Management Fee | 4.50% of Hard Costs | TriWest Development | Construction Expenditure Budget |
Administration Solution Licensing Fee(2) | 1.00% per annum of the aggregate capital contributions of the RM platform investor for whom RM Technologies provides the Administration Solution. | RM Technologies, LLC | Cash Flow / Capitalized Equity Contribution |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) For more information on the fees paid to RM Securities and its affiliates or any other fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLC
Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment Documents
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of Investment
This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor Assumptions
Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past Performance
Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of Debt
A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not Registered
Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment Advice
Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.