Cain uses buyer bonds to fund $10 billion One Beverly Hills project

London-based investment firm Cain is employing an unconventional financing model for its $10 billion One Beverly Hills development by inviting condo buyers to fund construction through 'Founder Bonds'. These voluntary bonds offer a 5 percent return and typically represent approximately 30 percent of a unit's purchase price. To date, buyers have contributed roughly $350 million, and the firm aims to raise more than $1.6 billion.

The luxury project, scheduled for completion in 2029, will feature approximately 150 ultra-luxury residences managed by Aman, hotel suites, high-end retail, and botanical gardens. Property prices start at $15 million, with some sales exceeding $7,000 per square foot.

While Cain maintains it has sufficient capital to complete the project without this specific funding, the bonds allow the firm to replace some of its own equity commitment. However, the model shifts construction risk to the buyers. These bonds are subordinate to a $2.8 billion senior loan led by J.P. Morgan and a $1.5 billion mezzanine loan from VICI Properties, meaning bondholders could face losses if the project fails.