Passive equity. Active returns.
K5 develops ground-up real estate in South Florida and builds it in-house with La Gala Construction. On selected projects we work with a single capital partner. Partnership terms and the current pipeline are provided to accredited investors on request, after an NDA. The track record is public.
How a K5 project gets built.
Three buckets of cost. One equity partner. One in-house build team.
Bucket 1
Land
Site acquisition, due diligence, and closing costs. Funded from project equity at close.
Bucket 2
Soft costs
Architecture, engineering, permits, legal, financing, and reserves. Also funded from equity.
Bucket 3
Hard costs
Vertical construction — funded primarily by a construction loan, with draw schedule to match milestones.
The equity partner funds the Land and Soft side; a construction loan carries the hard costs. The contribution, the split, the hold and the security package are set project by project and are provided to accredited investors on request, after an NDA.
How a project is capitalized.
Each project is capitalized with a senior construction loan, partner equity, and K5 as sponsor and builder. The order of repayment, the security granted to the partner and the profit split are set out in the project documents, which are provided to accredited investors on request, after an NDA.
How a partnership comes together.
Every project is different. Nothing here is a projection of results.
K5 sources the site, carries entitlements and permitting, builds with La Gala Construction in-house, and manages the sale or lease-up. A capital partner comes in at closing on one named project at a time and receives monthly reporting through the hold.
Terms, the current pipeline and project-level results are not published. They are provided to accredited investors on request, after an NDA — start with the pipeline or an investor inquiry.
Nothing on this page is an offer to sell or a solicitation of an offer to buy any security.
How we protect partner capital.
Segregated account
Every project funds flow through a dedicated project bank account — no commingling.
Secured by the project
Partner capital is secured against the project's real asset. The security package for a given project is set out in its documents, provided under NDA.
AIA draw schedule
Construction funds released against AIA G702/G703 draws tied to verified milestones.
Defined contribution
The partner's contribution is fixed at close. How cost overruns are handled is set out in the project documents, provided under NDA.
Real, collateralized asset
The underlying land and improvements stand behind the investment for the full term of the hold.
Full reporting
Monthly project updates including draw status, budget-to-actual, and schedule variance.
Who does what.
Equity partner provides
- ✓ Project equity, committed at close
- ✓ Patient capital through the build and sale
- ✓ Accredited-investor qualification
- ✓ Timely execution of documents at close
K5 provides
- ✓ Deal sourcing & diligence
- ✓ Site control, entitlements, permitting
- ✓ Construction management (La Gala Construction in-house)
- ✓ Sale or lease-up & exit
- ✓ Monthly reporting & investor communications
Proven through down cycles.
Glass — a Fort Lauderdale townhome development — was delivered through the COVID cycle and sold out in three months during spring 2021.
See full track record