This document provides information on the 314 Beach Lofts project in Oceanside, CA. The project involves developing a vacant 11,000 square foot lot into a four story mixed-use building with 10 luxury lofts and 2 retail spaces. The developer, Simcoe Green Homes, plans to obtain Energy Star certification and achieve zero-net electricity for the building. Target buyers include young professionals, vacation homeowners, and those interested in beach living. The project aims to raise $1.4 million from investors and is projected to have profits of $734,780 with a 16.2% profit margin.

1. 314 BEACH LOFTS
An urban ecovillage investment in Oceanside, CA

2. ABOUT
THE PROJECT

3. PROJECT SUMMARY
➤ 314 N. Cleveland Street, Oceanside, CA 92054
➤ 11,000 sq. ft. urban infill lot (currently vacant)
➤ Mixed-use four story development (10 lofts, 2 retail) located
two blocks from the beach in downtown Oceanside
➤ Property is entitled for ten lofts & two retail spaces
➤ Developer: Simcoe Green Homes

7. DESIGN &
POSITIONING

8. PROJECT POSITIONING
➤ Luxury lofts in an urban ecovillage setting
➤ Energy Star certified building
➤ Zero-net electricity
➤ Walkable community, close to restaurants, entertainment, etc
➤ Beach living

9. TARGET MARKET
➤ Young professionals
➤ Vacation home buyers
➤ Second home buyers
➤ Los Angeles buyers
➤ Beach lovers

20. TEAM

21. TEAM
➤ Developer: Simcoe Green Homes
➤ Architect: Kristi Byers
➤ General Contractor: Murfey Construction
➤ Design Consultant: PrinceHouse Living
➤ Steel Fabrication - FrameMax
➤ Sales Director -Cindy Roush

22. ABOUT SIMCOE GREEN HOMES
➤ We are a socially-responsible company that builds ecovillages
and develops healthy homes to protect the environment,
create jobs and improve neighborhoods
➤ Our goal is to protect the environment while lowering utility
costs through advanced green building practices
➤ 5% of company profits go to local non-profits

23. JIM SIMCOE BIO
Jim Simcoe is the Founder of Simcoe Green Homes (SGH), a socially-responsible
healthy green home developer in California. SGH designs and builds homes that
revitalize neighborhoods, create jobs and foster healthier, more community-based
living.
Jim is the Chairman of the Building Industry Association’s Sustainable Building
Committee in San Diego.
A nationally recognized green real estate developer, speaker and author, Jim has
been featured on NBC, Fox, SmartMoney.com, ESPN AM Radio, San Diego Insider
TV, and writes for EcoHome, San Diego Business Journal, Personal Real Estate
Investor Magazine, etc.
Jim is a Certified Green Building Professional, EcoBroker and Real Estate Broker. Jim
graduated from Manhattanville College in Purchase, New York in 1992 with a degree
in Management and minor in Philosophy while playing varsity lacrosse. Jim lives with
his wife, two daughters, two dogs and two cats in Cardiff-By-The-Sea, Ca.

24. THE
GREEN BUILDING
OPPORTUNITY
TODAY

25. / AUGUST 2015
CE $5.95 US $6.95 CAN
ONALREALESTATEINVESTORMAG.COM
FEATURE
E-TO-ONE: WHO’S AFRAID OF A LITTLE HOUSING BUBBLE? | MASTER INVESTOR: EDDIE SPEED/COLONIAL FUNDING GROUP AND NOTESCHOOL
CAPITAL CITY
PREIM - AUGUST 2015
➤ Buyers are willing to pay 10-14%
more for homes with green
certifications (Harris Interactive
Poll 2014)
➤ Analysis of 1.6M homes sold
between 2007-2012 showed that a
green certified home averages 9%
price premium in California
(USGBC report 2014)
➤ Millennials favor smaller, more
energy efficient homes & Energy
Star home rating is high on their
“must have” list (2015 NAHB
International Builders presentation)

26. WHAT BUYERS WANT
➤ Smaller homes
➤ Higher quality
➤ Energy efficiency
➤ Better air quality (healthier, less toxic materials)
➤ Lower utility bills
➤ Open floor plans

27. WHAT BUILDERS BUILD
➤ Homes barely built to new Title 24 building code
➤ Use wood framing almost exclusively (even by the beach)
➤ Few energy efficiency methods/materials
➤ Little attention given to healthy materials
➤ The fastest production homes that can be built in the shortest
timeframe possible

28. GREEN BUILDING MYTHS
➤ It adds 10-15% on to the price of construction
➤ It takes longer
➤ It’s more complicated
➤ It doesn’t translate into more money for the developer
➤ REALITY: Right team + Right strategy = Success

29. THE OPPORTUNITY
➤ Demand for green homes outweighs the supply of green
homes
➤ Currently there are less than 200 Energy Star buildings/
homes in San Diego
➤ Build high-end, energy-efficient green homes that offer higher
quality, durability and greater comfort than competing homes

30. TIMELINE
&
FINANCIALS

31. UNIT MIX/PRICING
Unit Square feet Bed Sales Price Price per sq. ft
1 1246 2bd/1.5ba (M) $703,990 $565
2 1246 2bd/2.5ba (M) $722,680 $580
3 1246 2bd/2.5ba (M) $722,680 $580
4 1146 2bd/1.5ba (M) $647,490 $565
5 1272 2bd/2.5ba (M) $737,760 $580
6 965 2bd/1ba $554,875 $575
7 1025 2bd/1ba $589,375 $575
8 1754 3bd/2.5ba (M) $982,240 $560
9 1936 3bd/2.5ba (M) $997,040 $515
10 1905 2bd/2ba (M) $981,075 $515

32. Total ProjectValue
Projected Best
Total Project Cost
Profit
Profit Margin (RO)
IRR
$ 7,956,093.00 $ 8,327,656
$ 6,933,474 $ 6,932,270
$ 734,780 $ 1,092,684
16.2 % 24 %
22.3 % 32.4 %
FINANCIAL PROJECTIONS*
*Projections subject to change & do not include rebate and incentive money received

33. REVENUE/COST SAVINGS EXCLUDED FROM PROJECTIONS
➤ Solar rebates
➤ Any additional grants, rebates, incentives for energy efficiency
methods
➤ 9% premium for green labeled homes
➤ 5% premium for new construction

34. CAPITAL STACK
➤ Total capital needed = $6,933,474
➤ Construction loan amount (65% LTC) = $4,506,758
➤ $2,426,715 required
➤ $1,080,000 raised
➤ $1,346,715 required*
➤ We will close the offering once we raise a max of $1.4M

35. CAPITAL RAISED COVERS
➤ Hard costs (land, construction, labor)
➤ Soft costs (permits, fees, architectural, consultants,etc)
➤ Operations (office, supplies, administrative expenses, etc)

36. PACE FINANCING POTENTIAL
➤ Used to finance any energy efficiency measures of the project
including: structural, MEP systems, exterior walls, roofing,
solar, consultant and design fees
➤ Financing is attached to property taxes for max of 20 years
although we will repay upon sale of the units
➤ Can be used in conjunction with a construction loan
➤ The GREATER the amount of PACE financing approved, the
LOWER the amount required for the construction loan
➤ LOWER construction loan = HIGHER profits

37. Date Pre-Sale Timeline
Nov/Dec 2015
Plan submittal, secure construction financing, apply for PACE
financing, apply for Pink report
Jan 2016
Building plans approved, finalize construction financing, apply for
Yellow report
Jan/Feb 2016 Start construction
March 2016 Yellow report complete, begin taking deposits
April/May White Report complete, begin pre-sales
Sept/Oct Construction complete

38. WHY
THIS DEAL?

39. WHY THIS DEAL WORKS
➤ The right team: Our team is comprised of experts in their
respective fields
➤ The right timing: Oceanside re-development is in full swing
➤ The right market: Large target market (young professionals,
vacationers, beach lovers, city lovers, etc)
➤ The right product: brand new energy-efficient luxury lofts in
the heart of downtown Oceanside

40. ANALYZING THE 314 OPPORTUNITY
➤ Market (neighborhood, city, street)
➤ Identify target market
➤ Identify competition
➤ Understand city politics and desires
➤ Talk to local agents, residents, retailers, etc
➤ Land appraisal ($1130,000 - July 2014)
➤ Project appraisal (Colliers’ - July 2014)

41. RISKS
➤ Entitlement
➤ Construction
➤ Not building “green” (becoming a “must have” vs. “nice-to
have”)

42. RISK MITIGATION
➤ Entitlement risk is zero, project is fully entitled
➤ Project is aggressively backed by the City
➤ High demand, very little competition
➤ Team is experienced in green building
➤ Building with steel vs. wood, less impacted by El Nino
➤ Shorter timeframe than traditional development deals (3-4
years) so less market timing risk

43. COMPETITIVE MARKETPLACE - CINDY
➤ Comps per sq ft price: $837-$1057 (for new construction)
➤ Comparable price per sq. ft: $581 (existing condos)
➤ Our per sq.ft ave: $548
➤ Apartments and retail being built downtown
➤ No new condos being built within 1/2 mile of our location

44. ABOUT
INVESTING

45. INVESTOR CHARACTERISTICS
➤ 1-2 year capital return window
➤ New to development deals
➤ $100k invested in project
➤ Previous experience investing in startups and/or real estate
➤ Legacy & Social impact important but not the deciding factor
➤ “Do good, make money”

46. RETURN ON INVESTMENT
➤ Financial - investors
➤ Societal - contribute to community
➤ Environmental - drastically reduce CO2 emissions
➤ Economic - create local jobs
➤ Legacy - example for future builders

47. INVESTMENT OFFERING
➤ You receive a pro-rata profit share of 50% of net profits
➤ Minimum investment - $50,000
➤ Structure: Cleveland Street Beach Lofts, LLC
➤ You are investing in the LLC that owns the land and the
project

48. INVESTMENT DOCUMENTS*
➤ Capital Investment Agreement
➤ Capital Investment Agreement Addendum
➤ Operations Agreement
*When you invest you become a member in the LLC that owns the property

49. FREQUENTLY
ASKED
QUESTIONS

50. HOW IS MY INVESTMENT SECURED?
When you invest you become an equal Member in the LLC
that owns the land. You investment is secured by your share
in the LLC.

51. WHAT IS THE MINIMUM INVESTMENT AMOUNT?
➤ $50,000 is the minimum investment in the project
➤ Once invested, you are allowed to reinvest at the terms of
your original investment

52. HOW DO I INVEST?
➤ Sign the Operations Agreement and the Capital
Investment Agreement
➤ Make payment arrangements through Jim, Taj or Cindy. We
accept wire transfers and checks made out to: Cleveland
Street Beach Lofts, LLC*
➤ Return both signed agreements with your method payment
to: Cleveland Street Beach Lofts, LLC, 676 Second Street,
Encinitas, Ca 92024
*314 Beach Lofts is a dba of Cleveland Street Beach Lofts, LLC

53. CAN I PURCHASE A UNIT?
As an investor you will have first right of refusal to purchase
one of the lofts prior to the lofts being offered to the general
public.

54. HOW MUCH MONEY HAVE YOU RAISED?
As of November 1, 2015 we have raised $1,080,000.

55. HOW OFTEN CAN I GET UPDATES ON THE PROJECT?
Our team prides itself on frequent and transparent
communication with our investors.
You are always welcome to contact our Managing Member,
Jim Simcoe with any questions you have.
We also send out project update emails frequently so you’re
always up to speed.
We also welcome visits to our office in Encinitas and the
project site in Oceanside.

56. CONTACT INFO
Jim Simcoe
jim@314BeachLofts.com
760-271-7128