Frequently asked questions
What is E3 Development, LLC?
E3 Development, LLC is a boutique, family-owned commercial real estate (CRE) development company. Via our various subsidiaries, we create start-to-finish investment opportunities by developing, building, owning, and managing the real assets we bring to life.
Under a “Lean” philosophy, we provide investors with higher-than-market returns and lower-than-market risk.
What types of assets does E3 focus on?
Currently, we invest in small-to-mid-size (60-200+) multi-family apartments. We believe the market is primed for multi-family properties in key growth areas due to the lack of supply and increasing demand (large market growth spurts).
Other commercial opportunities we prefer can be found in assets categories like flex office space, industrial warehousing, or self-storage, typically in an emerging market. Again, we like to focus on ground-up, new construction.
Why does E3 build ground-up, new construction?
We prefer building assets from the ground-up (after acquiring the raw land) because we control product quality and cost. Our ability to successfully navigate the entire construction process allows us to remove common issues and stumbling blocks and that are considered normal in the CRE industry, such as... major change orders, lack of quality and skill, document mismanagement, supervisory mismanagement, communication and agreement issues, the “blame game” among different construction trades, even between developer and general contractor, etc.
Since everything we do is "in-house” and still us, we more a lot of the convolution, and we make sure build assets that will last and we can be proud of for many years to come. This, of course, positively influences our bottom line, and creates greater returns for our investors than the next CRE firm.”
Why not Value-Add properties?
Value-Add properties - underperforming properties – are great investment vehicles… if you can find them at just the right price, the right place, and at the right time. In order for a Value-Add to make absolute sense, a lot of things must align – things that you, as the investor, don’t always have knowledge or control of.
Additionally, typically, investing in Value-Add properties yields extremely tight margins, where a slight shift in the economy, locally or nationwide, can influence those numbers significantly. Finding an undervalued, positive cash-flow producing asset, with minimal rehab cost, is not the best real estate investment vehicle – the margins are typically too low.
Our ground-up, new construction properties allows for a larger financial gap between build price and appraisal price, creating robust "savings". This means we can offer larger ROI's to our investors. There's more of the pie to share.
Why is E3 different than other commercial real estate firms?
As we’ve mentioned, E3 is different from other CRE investment firms. A typical development process allows for developers to gain pre-development/development fees up-front. These commissions are costly. Our development fees are taken out of the back-end out of the same profit that the investors share in. We get paid when you do.
The standard process also includes hiring a 3rd-party general contractor/builder. The nature of the GC business is to increase profit margins and complete the job as quickly as possible. This can result in higher costs and lower quality – we offer the opposite formula.
Have questions? Reach out to us! We look forward to connecting with you.