Introduction


Based on forecasts for new construction driven by needs, we outline our intention to build or rehabilitate affordable and readily available senior citizen and student housing units in the coming years. If the forecasts prove accurate, the number of UCG housing units under development is expected to reach upwards of 10,000 units completed in ten years.

UCG has identified the ever increasing demand for both affordable housing for senior citizens and affordable student housing as an opportunity with some challenges. Our new building plans, which will tie in with student housing requirements, call for smaller-scale, more differentiated and more flexible housing.  Most of our properties will include a mixed use element with retail renting on the first floor and we will focus on providing shops and stores that meet the resident tenants preferences, this will be done where financially feasible. For the rest of the projects we will focus on finding select properties that fall within our criteria and mostly have been overlooked by other developers, looking to renovate 300+ room motels & hotels into permanent affordable housing. We are focusing on smaller properties that will cater specifically to either senior citizens or where location permits, student housing.

Pre Fabricated Modular Unit
With the additions of amenities mentioned, which are typically found at higher priced rentals, we are especially focusing on self-contained accommodations that will rent by the room, with shared facilities such as living room and kitchen (Common Areas). In the long term, the accommodations could also house other focus groups. In this way, the quality of all student housing in California, Florida and eventually throughout the U.S. will improve, while at the same time lowering our long term rent risks. 

Longer-term student forecasts are hard to gauge. The numbers of students and demand for rooms in our focus areas, could fluctuate strongly. For this reason, this plan not only presents the opportunities and intended investments, but also structural monitoring and risk management to remain flexible and change our “earmarked” student housing / senior housing, into condominiums for sale focusing on the Asian markets still interested in participation in a California land grab. As well as other affordable housing and developments to be built throughout the United States. 

The differentiated, flexible new buildings we have realized in recent years and the housing units now under construction illustrate the very sound, unchanged basis of our strategy: to provide quality housing that fits the housing requirements of students and predominately having them occupied by graduate students for long term use, is appealing to the managers of this fund. 

Modular Build Housing Concept
For its revenues outside of student housing, UCG which will find, acquire, develop, and either self manage or sell new build pre fabricated container based buildings or rehabilitated motel properties for use predominately as affordable housing, specifically for senior citizens. These two laser focused verticals each have guaranteed rents. For example in California, 20 year rent rolls are granted by the UC Regents and subsequent universities as well as local and state funds for use as affordable housing. UCG however, will not need to depend on the rental income from every project, for sustainability. As many of our projects are often sold to other builders, as "Shovel Ready".

This type of build is designed to target quicker more consistent returns to our LP's and fund. At the same time if we do build and need to hold the project, we rent to universities which generally speaking, have very strong financial resources and later sell at a multiple of rent roll. In part because of our aim to increase our new building projects substantially, we want to establish a rent level that will make this more profitable, while keeping rents at affordable levels. 

In the coming months we are switching in stage to new methods and material for these projects. Our focus is on sustainability, quality, function and expediency. This plan is the result of consultations with our main strategic advisors and build partners, after presenting them the general strategic framework. From these discussions, its clear that all parties are in complete agreement with the main outline and plan for the future of UCG.

This plan in its entirety will show that UCG is extremely well positioned to take on a fair share of the student housing and senior housing sectors, with our flexible and innovative building methods, partnerships with CDFI's or "Community Development Investment Banks" and relationships with local, state and federal government officials. We feel that we can accomplish our stated goals with expediency and complete our projects on time and on budget. In addition to this, UCG has also sourced and researched many other avenues of revenue to keep our LP’s overall risk as low as possible, while keeping forecasted profits at the highest levels achievable. We have devised many specialty applications for our "Shipping Container / Modular Pre Fabricated Building" technique and currently have multiple future developments in the pipeline at different levels. However due to the fallout from Covid and the ever growing need for emergency housing, we are currently focused at looking for properties that can be renovated quickly and converted into temporary senior citizen housing, that will fit the criteria for government funding.


Sincerely,
Managing Partners, 
University Capital Group