Residential Real Estate Investments
Chesapeake Capital is an opportunistic real estate investor. Our primary focus has traditionally been on small and mid-sized real estate development projects which are residential or mixed-use with a heavy for-sale residential component.
With respect to geography, we will consider investments on the eastern seaboard from Pennsylvania to South Carolina. Our existing portfolio is heavily weighted in South Carolina, a market on which we are extremely bullish. We also have a high level of interest in Maryland, where our office is located.
Chesapeake Capital believes that formulating and implementing the optimal capital structure for each project, regardless of size, is one of the primary drivers of a successful outcome. Ample and properly-priced capital provides the project with essential flexibility to sustain unforeseeable market fluctuations and cost overruns, as well as minor strategic errors. However, many developers do not focus on this or do not have the expertise to do so.
Chesapeake Capital has provided capital for residential real estate development in a wide variety of structures. However, we are currently focused on equity joint ventures and direct purchases of real estate. Typical equity investment size is $500,000 to $3 million. Larger transactions can be accommodated through co-investments.
More and more investors have been exploring investments in alternative asset classes in order to diversify their portfolios. Chesapeake Capital has been filling this need for individual and small institutional investors since 1997 by offering investors the opportunity to participate in the attractive returns available in small private real estate investments with a reasonable fee structure and without the stress of active management of these investments.
Chesapeake Capital raises money periodically, both for closed-end Real Estate Private Equity Funds and for discrete Projects, through the issuance of Private Placement Memorandums (PPMs) to accredited investors. If you are interested in receiving future PPMs, please Contact Chesapeake Capital.
In 2012, Chesapeake Capital diversified into commercial real estate development. This strategic decision was made primarily to provide neighborhood retail services to the homeowners in mixed use developments which we have Master Planned. Prior to 2012, we had always sold off these properties to other commercial developers. However, developing these commercial properties, both for our own account and in conjunction with our Investors, has allowed Chesapeake Capital to retain the significant value created in the development of these properties, which continues to be enhanced by our ongoing residential development activities. Furthermore, owning and operating these commercial properties allows us to control the nature and quality of services being provided to our homeowners.
Chesapeake Capital currently owns and operates commercial properties in the Charleston and Greenville, SC markets and controls a significant amount of vacant commercially zoned property in both markets. We are focused on food service, medical uses, and neighborhood retail and other services.
Although currently focused primarily on Maryland and South Carolina, Chesapeake Capital has provided equity capital or other forms of financing to nearly 100 residential projects of various sizes in the following States:
- New Jersey
- North Carolina
- South Carolina
Two of the largest Projects that Chesapeake Capital has spearheaded from inception are Foxbank Plantation in Charleston, SC and O’Neal Village in Greer, SC. Chesapeake Capital has developed Foxbank and O’Neal in partnership with The Randolph Group and active development of for-sale residential building lots as well as commercial buildings for lease is ongoing at these locations.