Minority-owned real estate firm Primestor Development last week raised $165 million for its Urban Vision Fund I, with which it plans to execute on local mixed-use and transit-oriented projects that serve urban and minority communities in the county.
The Culver City-based developer aims to nearly double that amount to $300 million by the end of the year. The initiative’s first funding round included $100 million from Belay Investment Group, a women-owned firm in Sherman Oaks, and $25 million from LGT Capital Partners.
Primestor said the initiative will advance its “core thesis” of investing in and developing projects in dense, urban communities with potential for high growth and limited access to essentials such as housing and basic services.
“The fulfillment of our mission to deliver transformative real estate projects to underinvested communities, hinges on our ability to develop the right partnerships at every stage of our work,” Arturo Sneider, Primestor co-founder and chief executive, said in a statement. “We see Belay as an ideal, mission-aligned partner that supports our vision and will work with us hand-in-hand for the success of our projects and the advancement of our company.”
Added Leandro Tyberg, co-founder, president and COO of Primestor: “LGT Capital Partners is an excellent partner for Primestor given its profound appreciation for and understanding of our unique investment strategy and the growth potential in our urban markets.”
Since its founding 1991, Primestor has invested more than $1 billon in real estate projects. The company maintains a local-hire philosophy, which it says has created more than 14,000 construction and permanent jobs locally that generate $1.3 billion in local economic activity in “historically overlooked communities” each year.
Eliza Bailey, chief executive of Belay, said her firm emerged from its due diligence process “impressed” with Primestor’s leadership. Belay typically invests in middle-market infill developments in transit hubs, which signals where the two firms may align philosophically.
“Their thoughtful and disciplined approach to real estate development and investing provides significant social and economic impact to historically overlooked Latino and Black communities while also focusing on delivering returns to institutional investors,” she said in a statement. “Primestor’s mission and their deep-rooted engagement and collaboration in the communities they serve resonates deeply with our team.”
