March Capital Management

We began developing ultra-luxury homes at a luxury resort in Big Island of Hawaii a few years ago. Hawaii was a new market for us, which led to some pushback from our LPs about entering a market we were unfamiliar with. Additionally, we frequently heard concerns that the ultra luxury market is the most vulnerable during economic downturns (depends on the product/location, but Hawaii luxury market has been remarkably strong). Recently, we announced the sale of the final home in this development, achieving over 40% net IRR (annualized compounded returns). The combined project also generated over 40% net IRR for our fund partners. We anticipated the challenges of developing in Hawaii. Labor shortages were significant, and labor costs were several magnitudes higher than in California (hard to believe, but true). When the surf was up, our framers would call in sick 😅  Also, we faced challenges such as volcanic eruptions, insurance restrictions, and strict regulations imposed by high-end resorts. Construction was banned during festive periods and weekends, and even truck sizes were regulated. Despite these obstacles, we were drawn to this market because it caters to ultra-wealthy buyers who typically do not rely on borrowing and are less impacted by interest rate fluctuations. The availability of land in high-end resorts is extremely limited. Our investment thesis was that buyers in this segment would pay a premium for fully turnkey products, as they generally prefer not to deal with construction themselves. Our assumptions proved correct. This project will result in a significant windfall for our Fund IV LPs. Including this transaction, the median IRR across our four funds is now 35%, encompassing 29 completed projects! March Capital Management

Last week, we hosted our annual holiday party, bringing together over 150 investors, partners, and friends to celebrate. It was a wonderful reflection of the great community we’ve built and the dedication of our amazing team. Here’s to continued success and an exceptional 2025! 🥂 #HappyHolidays  

We're excited to have Eduardo Sagüés Castillo, Partner, Development at March Capital Management, speak at The Private Markets Florida Meeting, December 6th, 2024. For agenda or registration inquiries email: erick@carmocompanies.com Register Today! https://lnkd.in/eWq48YrW

Great progress at 45 Logistic South near Austin, TX! Building 2 now has walls up, and the roof is on for Building 3. Stay tuned for more updates! #ConstructionProgress #45LogisticSouth #IndustrialDevelopment #ProjectUpdate #DroneView

Exciting progress is happening on-site at 45 Logistics South near Austin, Texas. #GoingVertical We look forward to sharing more updates as things take shape! #CreedmoorTX #IndustrialDevelopment #45LogisticsSouth

We recently attended a real estate panel organized by Carmo in NYC. It was great to be on the same panel as industry leaders Sarah Jancot, David Hamm, and Sean Dalfen. While there are one-off opportunities for common equity, capital remains on the sidelines, still awaiting further direction from the Fed.  

https://lnkd.in/gwnB_RCA We typically decline press interviews. I think I have declined over two dozen interviews on various SF projects over the last decade. I decided to do this interview with the hope that it helps the city in the future. The process in CA (and especially SF) is broken mostly due to CEQA and arbitrary discretionary permitting. I am hoping that there will be a reform of CEQA and discretionary permitting. Until that point, capital will continue to flow outside of SF and CA. Gavin Newsom

Having strong bank partners is crucial, especially in today's challenging capital markets environment. Bank of Marin has proven to be an invaluable partner for us. Recently, we successfully refinanced our newly built condominium development with the Bank of Marin, resulting in substantial savings in interest expense for our LPs. This has also provided us with the necessary runway to effectively market these beautiful homes. We are thrilled to announce that within less than six months since the sales launch, The Belvedere has achieved an impressive 55% sold. We extend our heartfelt gratitude to our buyers for their support and interest in this exceptional property. We look forward to welcoming more residents and continuing our journey with enthusiasm. Follow us on IG: https://lnkd.in/gntj-ZYm To learn more: https://lnkd.in/gBsXGNxx #RealEstate #SanFrancisco #Condominium #PropertyDevelopment #Investment #TheBelvedereSF

The Belvedere is now open in the Cow Hollow neighborhood of San Francisco, and we have some great photos to share. The design approach juxtaposes strong geometric forms with natural materials, including the lobby space which is decorated in coffered wood paneling, marble, and poured terrazzo floor with a custom brass inlay pattern. Units feature imported Italian stone, Madera European Oak floors, Gabana Quartzite countertops, and custom cabinetry.    Great work from Glenn Rescalvo, John Ishihara, Julia Leister, Ashton Kidd, Joyce Lim, Alexandra Prior, Patricia Escoda, Victoria Pangilinan, and Katie Wilson. Client: March Capital Management  Images: Scott Hargis 

Great momentum at The Belvedere SF! Less than 4 months after the sales launch, we're 50% sold. To learn more: https://lnkd.in/gBsXGNxx #TheBelvedere #SalesMilestone #sfcondo #RealEstate #SanFranciscoCondos