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ABOUT US
From development to operation, everything is handled within our own group.
MDNI GROUP is a vertically integrated real estate developer in the United States, handling everything from development and licensing to construction, leasing, and management within its own group.
Typically, real estate development in the United States is fragmented, involving different parties at each stage: developers, consultants, general contractors, leasing companies, and property management companies. Each time the stage changes, information becomes fragmented, responsibility becomes ambiguous, and costs and time balloon.
We have all of these processes within our group of five companies. The people who select the land, the people who obtain permits, the people who actually build, and the people who lease and manage the properties all work together as one team. That's why we can make decisions quickly, take responsibility for quality, and explain everything to our investors through a single point of contact from start to finish— this is the basic design of MDNI GROUP's business.
Group Structure — The Reality of Vertical Integration
Five companies will work on a single project without any handover.
All five stages, from land acquisition to operation and management, are completed within the MDNI GROUP. This eliminates the time spent searching for external contractors and the costs associated with coordinating between different companies.
MDI Group
Land acquisition/
business plan
MDNI GROUP
Development company
Land excavation and acquisition
Business plan formulation
Fundraising and investor relations
Overall project management
STEP01
Entitlement
JDJ Consulting
Obtaining permits
Zoning analysis
administrative consultation
Obtaining various applications and permits
Application of incentive system
STEP02
Design adjustment/
construction
MID Construction
Construction company
design adjustment
construction
Cost management and process management
quality control
STEP03
Leasing
(Tenant recruitment)
Hoffman Brothers Leasing
Leasing company
Vacant property advertisements
Property viewing
Recruitment and screening of applicants
Advice on setting rent
Procedures for signing the contract and moving in
STEP04
Operations Management (PM)
Coastal Crest Property Management
PM Company
Daily management after moving in
Rent collection and handling of arrears
Repair and tenant support
Accounting Report
Renewal, move-out, and eviction support
STEP05
Business Overview - Four Areas of Business
Income-restricted housing
This project involves developing multi-unit housing utilizing local government income restriction programs. By maximizing administrative incentives (such as relaxed floor area ratio regulations, shortened application procedures, and tax breaks), it achieves both social significance and business profitability simultaneously. While the difficulty of obtaining permits limits the number of businesses that can participate, the demand for occupancy after completion is extremely stable.
01
ValueAd
This method involves acquiring existing properties and increasing their asset value through renovation, operational improvements, and rent optimization. Compared to new development, it features a shorter construction period and faster cash flow recovery. By combining renovations by MID Construction with operational improvements by Coastal Crest Property Management, we unlock the full potential of each property.
02
Distressed Assets
This is an area where we acquire and revitalize properties that are not realizing their true value due to factors such as construction interruptions caused by financial difficulties, debt defaults, and poor operations. Because we have our own functions for licensing, construction, and operation, we can accurately assess the situation and take on "stalled projects" that other companies shy away from.
03
Hotel
We handle everything from site selection and development to establishing the operational structure. We analyze accommodation demand and local tourism and business trends to design the appropriate scale and grade. By having the group involved until the operational phase, we ensure that the assumptions made during development are not separated from the actual operation.
04
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Joint investment with Japanese corporate clients – Investment design that takes depreciation into account
MDNI GROUP offers Japanese corporate clients a co-investment framework for existing wooden rental housing in the United States. This framework combines rental income with increased asset value through renovation and operational improvements, all while incorporating investment design that takes into account the depreciation treatment under Japanese tax law.
Under the Japanese tax system, there is a provision that allows for a shorter depreciation period for used assets that have exceeded their statutory useful life, under certain conditions. The reason for targeting existing wooden rental housing is based on these conditions.
Furthermore, the price structure of land and buildings, as well as the method of financing, are important factors when considering an investment plan. MDNI GROUP handles loan coordination with local financial institutions and proposes acquisition plans that combine self-funding and borrowing. We also consider the profitability of the property and the handling of depreciation, and create a plan that suits your investment policy.
We offer a comprehensive service from property selection and acquisition to renovation and rental management, all handled by our group. Please contact us for details regarding target properties and the process of co-investment.
*This content is an overview of the framework. Loan terms, scope of liability regarding borrowing and guarantees, and tax treatment will be confirmed and determined on a case-by-case basis. Tax effects are not guaranteed, and applicability should be confirmed with experts in Japan and the United States, as well as your company's tax advisor. Real estate investment involves risks such as principal loss.
Strengths of MDNI GROUP
Development, licensing, construction, leasing, and management—MDNI GROUP possesses all five of these functions within its group. This means more than just "having one point of contact for convenience."
Cost transparency. Because construction is handled by a group company, the breakdown of the estimate is clear. There is no structure that accumulates intermediate margins.
Speed. The company that forecasts the necessary permits and licenses, the company that actually builds the building, and the company that leases the land are all at the same table. There's no need for "We'll check and get back to you."
Our design process is based on working backward from operational needs. Since we are responsible for management and leasing after completion, our designs are not simply "build and sell and forget." Ensuring that the buildings are comfortable for tenants and remain operational for a long time aligns with the interests of the entire group.
Accountability. When something happens, there is always one designated entity that is responsible for explaining the situation to our investors.We leverage our strengths in handling all stages from development to operation in-house, including streamlining design and construction, adopting construction methods that shorten construction periods, and utilizing property data for operational management. We apply the knowledge gained in each phase to the next project. The very system by which we accumulate information on "what happened last time" within the company is the driving force behind our improvement.
The United States has a diverse range of public and semi-public loan programs, tax incentives, and government incentives to support housing supply and urban regeneration. MDNI GROUP scrutinizes these programs according to the nature and location of each project, aiming to maximize capital efficiency. Since the feasibility of utilizing these programs must be considered from the licensing design stage, having JDJ Consulting within our group is invaluable here as well.
Projects completed to date: Over 1,500
Total development scale: [Number of units, total floor area, total project cost]
Representative projects: [Project name and overview]
Our Mission
The United States continues to face a severe housing shortage. Supply cannot keep up with demand, the cost of housing is putting a strain on household budgets and stifling the vitality of cities.
MDNI GROUP is addressing this challenge by providing affordable housing. Building affordable housing brings economic, social, and environmental benefits, improving the overall health of cities. And for investors involved in these projects, it provides a solid business opportunity supported by stable demand.
Economic stability
Affordable housing brings significant financial stability to low- and middle-income earners. Reduced rent or mortgage payments stabilize living expenses, allowing for more flexibility in savings and other living expenses.
Reducing the problem of homelessness
Los Angeles has one of the largest homeless populations in the United States. Increasing the number of affordable housing options is expected to provide stable housing for the homeless and alleviate the problem of homelessness.
social equity
Ensuring that all citizens have access to adequate and safe housing is a crucial part of social equity. Providing affordable housing allows everyone to enjoy a basic quality of life.
Strengthening local communities
Having stable housing also contributes to strengthening the local community. When residents live in the same area for a long period of time, the local community is strengthened, and a culture of mutual support is fostered.
Environmental considerations
The new affordable housing project is also an environmentally friendly initiative by adopting energy-efficient buildings and sustainable designs.
Services
Development Management
用地評価
財務評価
プロジェクト・マーケティング
エンタイトルメント
建設マネジメント
不動産および資産管理
Land valuation
Advisory ServicesAdvisory Services
Investment advisory
Development Consulting
Strategic Planning
Entitlement Strategy