Shangri-La Industries & Step Up on Second Street
Shangri-La Industries, LLC (SLI), the lead developer, capital partner, contractor, and asset manager, was formed 14 years ago by principals with considerable experience in the ownership and opera?on of real estate to address the typical shortcomings experienced in the industry. Today it is a privately held, ver?cally integrated group of firms focused on excellence in mul?-family housing and hospitality facili?es. As the parent corpora?on of two leading businesses in the California real estate industry, Shangri-La Development, LLC (SLD) and Shangri-La Construc?on, LP (SLC), SLI delivers across a spectrum of real estate special?es efficiently and cost-effec?vely.
SLD is SLI’s real estate and financing arm specializing in the development and ownership of multi-family housing, focusing on permanent supportive housing (PSH) for the most at-risk populations. SLD’s services include site acquisition, entitlements, financing/funding and financial modeling, architectural design, construction oversight, compliance, and asset management.
SLC is a commercial general contractor servicing SLI/SLD and other developers alike. SLC offers a broad spectrum of capabilities ranging from tenant improvements and renovations to ground-up construction across various market sectors. SLC’s services include preconstruction, construction, design- build, virtual building, and sustainability/wellness consulting.
SLI’S vertically integrated organization ensures that the team oversees and streamlines all facets of the projects from start to finish. SLI is a known financial powerhouse with a bonding capacity of over $450 million and more than $300 million in private capital committed to sheltering, rehabilitating, and improving the lives of the underserved. SLD is skilled at securing challenging entitlements and permit submittals and engaging local municipalities to ensure favorable outcomes within the community. SLC has built it all – ground-up high-rises, complex historic renovations, and fast-track tenant in-place renovations. Coupled with in-house designers, compliance teams, and select sub-trades, the SLI umbrella of companies can execute with assurance across the board.
Under this model, the SLI team has provided nearly 1,200 PSH units, developed 18 PSH properties, and acted as a general contractor for 29 PSH properties - a testament to SLI’s capacity to expand affordable housing opportunities and improving the quality of life for underserved communities.
Step Up on Second Street, Inc. (Step Up), the co-developer, property manager, and lead services provider, was first established 35 years ago as a drop-in center offering a safe space for individuals who needed a compassionate environment with recovery-oriented activities such as art therapy, employment training, coping skills, and service coordination. As Step Up’s program grew, its staff observed that many Step Up members were also unhoused, complicating, and exacerbating their existing needs. To address a shortage of affordable housing, in 1994, Step Up, along with a development partner, built its first units of permanent supportive housing (PSH) at Step Up on Second - some of the original tenants are still living in their units today.
Today, Step Up is a 501(c)(3) organization that provides housing, property management, workforce development, and individualized supportive services for people and families experiencing chronic Exhibit B
homelessness, homelessness, those at risk of homelessness, individuals with serious and persistent mental illness (SPMI), transition-age youth, Veterans, persons who identify as LGBTQ+, and other vulnerable populations under the Housing First model using local Coordinated Entry Systems. These functional areas are overseen by Senior Executives, regional Vice Presidents, and corresponding Directors, Program Managers, and direct service staff. Nation-wide, Step Up has 400 employees with physical offices in Los Angeles and San Bernardino Counties and Atlanta, Georgia, servicing California and the southeast region of the United States. To date, Step Up has had a hand in developing 26 PSH properties – most of which they manage and provide services for, and houses hundreds of individuals in scattered sites where landlords accept housing vouchers. That said, Step Up’s quantifiable outcomes are focused on the goal of housing retention. Individuals in Step Up housing and support programs remain stably housed at a 97% retention rate after 12 months. Through permanent supportive housing and comprehensive case management services, Step Up is a leader in providing their residents recovery, stability, and integration into their communities. SLI and Step Up began a partnership nearly a decade ago with the joint mission to be at the forefront of change to deliver safe housing solutions coupled with compassionate support to the most at-risk to help them recover, stabilize, and integrate into their communities.
SLI & Step Up HomeKey Experience Combined, SLI and Step Up have nearly 50 years of experience acquiring, developing, owning, and operating multi-family affordable rental housing whose primary resident population is extremely low-income (ELI), people and families experiencing chronic homelessness, homelessness, those at risk of homelessness, individuals with serious and persistent mental illness (SPMI), transition-age youth, Veterans, and other vulnerable populations. Notably, the SLI and Step Up team have seven projects in the HomeKey Round 1 and Round 2 programs. Please see below for detailed information regarding each HomeKey project: Step Up in San Bernardino SLI/Step Up successfully converted the former All Star Lodge at 450 N G St, San Bernardino, CA 92410, into a 77-unit permanent supportive housing community for chronically homeless seniors. It ranks in the top 10% most cost effective Homekey projects in California. Step Up provides property management and support services for the tenants. Construction is complete and a Certificate of Occupancy was issued on April 6, 2023. The project is currently 50% occupied, with 100% lease-up imminent. Step Up in Salinas SLI/Step Up is in the process of converting the former motel, Good Nite Inn at 545 Work St, Salinas, CA 93901, into a 101-unit permanent supportive housing community for chronically homeless individuals. The hotel was purchased with financing from SLI and was made possible in part with a grant from the state’s Project Homekey program. Step Up provides property management and support services for the tenants. The project is currently 50% occupied, while the vacant units are in the process of renovation. Step Up in Redlands SLI’s development and general contracting team retrofitted the former Good Nite Inn into 100- unit permanent supportive housing community for chronically homeless, homeless, and those at-risk of homelessness. The hotel was purchased with financing from SLI and was made possible in part with a grant from the state’s Project Homekey program. Step Up provides property management and support services for the residents. As of March 2023, the Step Up in Redlands was fully occupied. Step Up on Fairview SLI/Step Up is in the process of converting the former motel, Salinas Inn at 1030 Fairview Ave, Salinas, CA 93905, into a 44-unit permanent supportive housing community for chronically homeless individuals. Certificate of Occupancy is expected in May 2023, with lease-up starting shortly thereafter. Step Up on Sanborn SLI/Step Up is in the process of converting the former motel, Sanborn Inn at 180 S Sanborn Rd, Salinas, CA 93905, into a 59-unit permanent supportive housing community for individuals who are chronically
homeless and at-risk of homelessness. This project is expected to be leased up before the end of the 2023 year. Step Up in King City SLI/Step Up is in the process of converting the former motel, Days Inn at 1130 Broadway St, King City, CA 93930, into a 46-unit permanent supportive housing community for individuals who are chronically homeless and at-risk of homelessness. This project is expected to be leased up before the end of the 2023 year. Step Up in Thousand Oaks SLI/Step Up is in the process of converting the former motel, Quality Inn at 12 Conejo Blvd, Thousand Oaks, CA 91360 into a 77-unit permanent supportive housing community for individuals who are chronically homeless and homeless. With the support and financing from HCD, the City of Thousand Oaks, the County of Ventura, and SLI, this project is expected to be leased up before the end of the 2023 year.