Two former commercial real estate executives, Coleman Cox and Alex Pascale, have launched Vintage Real Estate Partners, a new firm based in Encinitas. The company will focus on acquiring and extensively renovating small, distressed apartment buildings in San Diego County and Phoenix with a long-term ownership strategy.
Key Takeaways
- Coleman Cox and Alex Pascale, previously with RedHill Realty Investors, founded Vintage Real Estate Partners in 2023.
- The firm's strategy is to purchase older, poorly maintained apartment buildings in desirable neighborhoods.
- Vintage Real Estate Partners will concentrate its investments in two specific markets: San Diego County and Phoenix.
- Unlike a 'fix-and-flip' model, the company plans to hold renovated properties for long-term growth.
A Shift from Corporate Scale to Boutique Investment
Before establishing their new venture, Coleman Cox and Alex Pascale managed large-scale real estate operations at RedHill Realty Investors in San Diego. Cox served as the Chief Financial Officer and executive managing director for portfolio management, while Pascale was the managing director of the firm's Investment Group.
During their time at RedHill, the pair was involved in apartment building transactions across the Western United States valued at approximately $1 billion. According to Cox, they also oversaw a substantial portfolio consisting of about 4,000 apartment units.
"We were investing in $50-million-plus apartment buildings across the U.S.," Cox explained, highlighting the contrast with their new business model. Their current focus has shifted dramatically from large institutional assets to smaller, independently owned properties that require significant attention.
Background in High-Value Real Estate
The founders' previous roles involved managing complex, high-value real estate portfolios. This experience in large-scale acquisitions and asset management provides them with a deep understanding of market dynamics, which they are now applying to a more granular, value-add strategy.
The Renovation and Hold Strategy
Vintage Real Estate Partners is centered on a specific investment philosophy: acquiring what the founders call "heavy value-add apartment projects." This involves identifying and purchasing some of the most rundown buildings in otherwise strong San Diego neighborhoods.
"Our background was very different from what we’re doing now. These are generally heavy value-add apartment projects where we are taking some of the most dilapidated buildings in great areas of San Diego and renovating the properties down to the studs."
The renovation process is comprehensive. Cox stated that their long-term ownership plan means they avoid cutting corners. Upgrades include replacing plumbing and sewer lines, installing new electrical wiring, and adding new roofs and windows. Interiors are also completely redone with new flooring, cabinets, countertops, and modern appliances.
"We plan to own and hold these properties for long periods of time," Cox emphasized. This long-term perspective is a core part of their business model and is reflected in the quality of their renovations.
Targeting Two Key Sun Belt Markets
The firm has deliberately limited its geographic focus to two regions: San Diego County and Phoenix. The decision to invest in San Diego is rooted in the founders' deep local knowledge; both Cox and Pascale grew up in the area, attending Point Loma High School and Cathedral Catholic High School, respectively.
"San Diego has a pretty good track record in rent growth and value appreciation," Cox noted. "That’s a dynamic of San Diego we really like and want to continue to invest in." Phoenix was chosen as the second market due to family connections and its strong growth potential.
Company Profile: Vintage Real Estate Partners
- Founded: 2023
- Co-founders: Coleman Cox and Alex Pascale
- Headquarters: Encinitas, California
- Business: Real estate investment focusing on value-add multifamily properties
- Target Markets: San Diego County and Phoenix
This targeted approach allows them to leverage local expertise and relationships, particularly when sourcing deals. "We’re trying to buy from mom-and-pop owners with mom-and-pop brokers," Cox added, indicating a strategy that relies on off-market or less-publicized opportunities.
Inaugural Projects and Future Outlook
Vintage Real Estate Partners has already begun work on its first projects. One of the initial acquisitions is a building in North Park, located at 3104 Meade Ave. The company is also renovating an apartment property in Vista. Both properties fit their investment thesis perfectly.
"The condition of both these properties was kind of like the old adage, ‘the worst property on a good street,’” said Pascale. He noted that the buildings were in poor condition with significant deferred maintenance, presenting a clear opportunity for transformation.
The company name itself, Vintage Real Estate Partners, is a nod to their focus on older buildings. Pascale shared their informal company tagline: "Like a Fine Vintage Wine, Our Investments Get Better in Time." This reinforces their commitment to long-term value creation.
Looking ahead, the co-founders have set realistic initial goals. Pascale mentioned they aim to complete between three and five deals per year as they establish the business. "We’re in the first inning of starting this business," he said. "We need to grow it over the next 10 years."
