Pacific Palisades
Fund I · ActivePost-fire remediation window. 10-year price CAGR of 14.2% before the January 2025 dislocation; TTM $/sf now 40% above calendar year 2024.
A $50 million Delaware limited partnership underwriting below-replacement-cost acquisition, institutional trophy-grade development, and disciplined rent-then-flip disposition across a 25-parcel Pacific Palisades pipeline — anchored on MLS-verified comparables, not narrative.
A disciplined, vertically-integrated investment strategy organized around a single structural thesis.
Palisades Legacy I LP is a Delaware limited partnership formed to acquire, develop, lease, and dispose of a curated portfolio of post-dislocation ultra-luxury single-family residences in Pacific Palisades, California. The Fund targets 18.2% Net IRR and 2.1× MOIC over a five-year term, underwritten on MLS-verified comparables at a deliberate 22% discount to the trailing twelve-month Pacific Palisades average.
The thesis is simple and disciplined: acquire below-replacement-cost parcels in a market where new supply is structurally impossible to manufacture; develop them to institutional trophy specification; lease them to generate interim yield; and dispose to qualified cash buyers at target premiums supported by documented same-asset comparables. The alpha is in the disciplined execution of all four pillars on a curated pipeline — not in any single element in isolation.
Acquisition at 15–25% below replacement cost during windows of owner-level distress, physical remediation requirements, and the absence of institutional competition. Disciplined sourcing through direct broker and owner relationships maintained by the Co-Heads of Acquisitions.
Development to institutional trophy specification at a base cost of $550/sf for standard flat-lot parcels (+$100/sf hillside; +$100/sf ultra-luxury finish). Construction financed at 40% LTC at current-market rates (7.5% base case). Monthly milestone reporting and independent cost audits.
Upon certificate of occupancy, each residence is leased for 12–24 months prior to disposition. The lease establishes documented income, generates interim cash yield, and provides disposition-timing flexibility. Exit to qualified cash buyers at documented premium comparables.
A platform-level pillar, borne entirely by Aprisa LLC at the OpCo level. SCARCE is a parallel tokenization vehicle — structurally distinct from the Fund, with no cross-claim. The Fund does not bear any SCARCE infrastructure cost. See §VII.
Continuous broker, agent, and direct-owner relationships across the sub-market. Standardized diligence addresses title, easements, zoning, setback compliance, geotechnical conditions, environmental status, and post-fire remediation.
Acquisition via single-asset investment vehicle. Entitlement within 90–180 days for standard parcels; 180–270 days for hillside or complex parcels. Section 721 contribution structures under evaluation for strategic-partner-held pipeline parcels.
Construction by a pre-qualified panel of institutional-grade general contractors. 40% LTC construction loan at current market rate (7.5% base). Monthly milestone reporting, independent cost audits at major phase transitions, and contingency reserves.
Lease placement upon certificate of occupancy. Disposition executed through the Co-Heads of Acquisitions' direct buyer networks to qualified cash buyers. Target hold 24–48 months per parcel; phased exits begin year three.
The Base Case is a single point, not a range. It is anchored against MLS-verified comparables and stress-tested in both directions.
| Scenario | Net IRR | MOIC | Driver |
|---|---|---|---|
| Downside | 11.5% | 1.6× | $1,250/sf comps (10% discount to calendar year 2024 average) |
| Base Case Headline | 18.2% | 2.1× | $1,500/sf · 8% appreciation · 7.5% debt · 40% LTC · 4-year hold |
| Upside | 24.5% | 2.4× | $1,800/sf (trailing MLS forward indicator) |
| Stretch | 29.5% | 2.6× | $2,000/sf + optimized 4-year hold combined |
Base Case 18.2% computed as XIRR on quarterly Limited Partner cash flows, net of 2.0% Management Fee on Called Capital and 20% Carried Interest above an 8% LP-first Preferred Return, American waterfall. Base Case underwrites at a 22% discount to the trailing 12-month MLS average of $1,932/sf. See Risk Factors.
$20.00M in 2024. $22.61M in 2025. The identical property — controlling for every property-level confounder — gained +13.1% in twelve months. At that pace, the Fund's $1,500/sf Base Case underwriting is conservative by a wide margin.
Combined LA Westside MLS data pulled April 2026 by Lawrence Levy, DRE# 01845.
25 parcels tracked across three tiers of readiness. The Fund is not sourcing from a standing start.
| Tier | Parcels | Total Basis | Equity Required | Vehicle |
|---|---|---|---|---|
| Core 10 Modeled in per-parcel pro forma | 10 | $21.4M | $31.5M | Fund I — Base Case |
| Tier 1 · Active Under active diligence · 90-day window | 7 | $17.4M | $29.4M | Fund I — Replacement / Follow-on |
| Tier 2 · Identified Negotiation or off-market dialogue | 5 | $16.9M | $23.3M | Fund I / II Opportunistic |
| Tier 3 · Watchlist Large / complex / assemblage | 3 | $9.6M | $5.8M | Fund II Pre-position |
| Total Pipeline | 25 | $65.4M | $90.0M | — |
Tier 1 alone ($29.4M equity) is sized to absorb full Core 10 attrition. If any Core 10 parcel cannot close on anticipated terms, replacement capacity is already identified and relationship-sourced.
Tier 1 + Tier 2 combined ($52.7M) provides 100%+ replacement coverage for the entire Fund I deployment plan — transforming execution risk from "can we source" to "which to select."
Tier 3 anchors the Fund II thesis. Larger, assemblage, and land-bank+ opportunities that are too capital-intensive for Fund I but pre-position the Aprisa platform for Fund II without a sourcing gap.
Pipeline Status. Pipeline acquisitions are currently held by a strategic partner. Section 721 contribution into Palisades Legacy I LP is subject to completion of due diligence, legal structuring, and General Partner approval. Economics presented are illustrative of the Aprisa playbook applied to these assets and do not represent closed or committed Palisades Legacy I LP transactions.
Pacific Palisades is the entry point. The Aprisa thesis extends across twenty structurally supply-constrained American luxury enclaves.
Post-fire remediation window. 10-year price CAGR of 14.2% before the January 2025 dislocation; TTM $/sf now 40% above calendar year 2024.
Red Mountain and West End. Ridge-line protections and historical preservation overlays prevent meaningful new supply.
East Hampton and Southampton oceanfront. Coastal setback regulations and preservation districts.
South Ocean Boulevard corridor. One of the densest concentrations of family-office capital on the Eastern Seaboard.
Additional target markets include Montecito, Malibu, Carmel-by-the-Sea, Nantucket, Martha's Vineyard, Jackson Hole, Telluride, and eleven further supply-constrained enclaves. Aprisa's investment universe is disciplined by acquisition sourcing capacity, not by the size of the opportunity.
The Aprisa platform spans institutional real estate, compliance, tokenization engineering, and structured finance.
Architect of the Fund's investment strategy. Previously founded and exited Caedia (healthcare EMR technology); designed Cuanza, Africa's first prospective touristic city-state SEZ with sovereign currency architecture; built a 100,000-acre agricultural platform in Uganda.
Certified Public Accountant with extensive experience in real estate fund accounting, tax-efficient LP structuring, and institutional reporting standards. Investment Committee member.
Institutional real estate private equity discipline applied to acquisition underwriting, development oversight, and exit execution. Investment Committee member.
Seventeen-year Westside luxury residential broker with deep transactional relationships across Pacific Palisades. Combined career volume with Mario Zoida in excess of $500M.
Westside Los Angeles luxury residential broker with extensive transactional history in Pacific Palisades, Brentwood, and surrounding sub-markets.
Production experience in ERC-1400 security token architecture on Ethereum. Leads SCARCE platform design: smart contracts, Chainlink oracle integration, compliance whitelist enforcement.
Prior compliance program architecture at Morgan Stanley. Responsible for KYC/AML, regulatory filing cadence, and on-chain compliance infrastructure.
Operations, technology infrastructure, and the operational bridge between the Fund, its service providers, and the SCARCE platform.
David Fox (Chairman) · Patrick Roberts · Mark Wilson. Mario Zoida and Lawrence Levy serve as non-voting members providing acquisitions intelligence. The Committee meets no less frequently than monthly during the Investment Period.
Qualified in its entirety by reference to the Limited Partnership Agreement and Subscription Agreement.
| Issuer | Palisades Legacy I LP, a Delaware limited partnership |
|---|---|
| General Partner | Palisades Legacy I GP LLC, a Delaware limited liability company and wholly-owned affiliate of Aprisa LLC |
| Investment Manager | Aprisa Management LLC, a Delaware limited liability company and wholly-owned affiliate of Aprisa LLC |
| Sponsor | Aprisa LLC, a Delaware limited liability company · Platform sponsor of the Fund |
| Target Fund Size | $50,000,000 aggregate Capital Commitments · $60,000,000 hard cap at GP discretion |
| Minimum Commitment | $1,000,000 per Limited Partner · GP discretion to accept smaller commitments |
| Regulatory Structure | Regulation D, Rule 506(c) · Section 3(c)(7) Investment Company Act exclusion |
| Eligible Investors | Verified accredited investors who are also qualified purchasers (where required) |
| Investment Period | Three years from First Close · GP may extend by up to twelve months |
| Fund Term | Five years from First Close · Two one-year extensions at GP discretion |
| Management Fee | 2.0% per annum on Called Capital during the Investment Period; 2.0% per annum on Invested Capital thereafter · No fee on Uncalled Capital |
| Carried Interest | 20% above 8% Preferred Return · American-style deal-by-deal waterfall · Full clawback at Fund termination |
| Preferred Return | 8% per annum, compounded |
| GP Commitment | Greater of 1% of aggregate Capital Commitments or $500,000 |
| Organizational Expenses | Capped at $950,000 (1.9% of committed capital) · Excess borne by GP |
| Leverage | Up to 40% loan-to-cost construction financing · 7.5% base case rate |
| First Close Target | Second quarter of 2026, subject to $10M minimum First Close threshold |
| Final Close | Not later than 12 months after First Close, extendable at GP discretion |
Called Capital fee base. The decision to charge the Management Fee on Called Capital rather than on Committed Capital is a deliberate, material term of the Fund. It aligns the economics of the Investment Manager with the pace and efficiency of capital deployment and reduces the front-loaded fee drag that penalizes Limited Partners in a slow-deployment scenario. Under a customary 2.0% Committed-Capital structure, the aggregate Management Fee over the five-year term would be $5,000,000 (10.0% of committed). The Fund's illustrative Called-Capital fee load is $3,050,000 (6.10% of committed) — an approximately $1.95M illustrative saving to Limited Partners.
A master tokenization platform — structurally distinct from Palisades Legacy I LP — issued and capitalized at the Aprisa LLC OpCo level.
SCARCE is not a product of Palisades Legacy I LP. It is Aprisa LLC's permanent tokenization infrastructure, capitalized at the OpCo level and applied first against the Palisades Legacy I LP portfolio. Future Aprisa funds plug into the same rails at incremental cost.
SCARCE token holders and Limited Partners of the Fund have economic exposure to the same underlying assets through structurally distinct vehicles with separate governance, compliance, and liquidity rails. There is no cross-claim between the two vehicles. The Fund does not bear any SCARCE infrastructure cost.
Visit scarce.fund ↗| Platform | Asset Class | Scale | Pattern Shared with SCARCE |
|---|---|---|---|
| BlackRock BUIDL | Tokenized U.S. Treasuries | $550M+ | Securitize issuance · Reg D 506(c) · Ethereum mainnet · accredited-only |
| Franklin Templeton BENJI | Tokenized Money Market Fund | $700M+ | On-chain transfer agent · NAV oracle · institutional KYC |
| Hamilton Lane (Securitize) | Tokenized PE Fund Interests | $2.1B+ | Identical Securitize stack · ERC-1400 compliance hooks · accredited LP-equivalent |
| St. Regis Aspen STO | Luxury Hotel Equity | $18M | tZERO secondary venue · proves luxury real estate tokenization viability |
| DAMAC (Mantra) | UAE Luxury Residential | $1B+ | Closest international analog: luxury residential at scale |
Every comparable above operates in a category SCARCE does not compete in. No existing platform tokenizes a curated U.S. domestic portfolio of $8–25M finished single-family luxury residences in supply-constrained enclaves. SCARCE does not compete for share in an existing category — it creates one.
Delivery is subject to accredited investor verification and execution of a confidentiality undertaking.
Confidential · ~74 pages · v2.1 current
Available on verificationWorking draft · Pending TKN Tyson LLP review
Working draftWith Investor Questionnaire as Schedule A
Working draftPalisades Legacy I LP ↔ Aprisa Management LLC
Working draftThree multi-dimensional sensitivity tables, recomputed at v6 anchors
AvailableApril 2026 · Parallel vehicle disclosure
AvailableNot exhaustive. Review the complete Private Placement Memorandum before investing.
Property values may decline due to macroeconomic conditions, natural disaster, or regulatory change. No guarantee of value preservation.
Pipeline parcels held by a strategic partner. Section 721 contribution subject to diligence, legal structuring, and GP approval. No assurance of completion on projected timeline.
Bare land parcels. No residential income is possible until certificate of occupancy. Cost overruns, permitting delays, or environmental remediation may extend timelines and reduce returns.
Construction loans at 40% LTC at 7.5% base rate. Rising rates or refinance failure may compress returns.
Geographic concentration in Pacific Palisades. A market-specific dislocation could materially affect Fund performance.
Performance depends on David Fox and senior leadership. Departure of key personnel could adversely affect Fund operations.
Material conflicts of interest between the Fund and SCARCE. See §6 and §9 of the PPM for full disclosure.
Rule 506(c) verification, Section 3(c)(7) qualified purchaser status, and digital asset securities frameworks continue to evolve.
LP Interests are subject to significant transfer restrictions. No secondary market exists for LP Interests.
For verified accredited investors. Aprisa's investor relations team responds within one business day.