Parcel to Develop: 61 acres to subdivided to 82 houses & 84 unit apartment w/ clubhouse & water park
Proposal Summary:
Development of 61 acres. Parcel will be subdivided into 82 houses & a 84 unit apartment with a club house & water park. Total Project Costs around $57MM; $42MM will fund construction of apartment & some lots; and profits from sales for remainder.
RESIDENTIAL LOTS:
The 82 houses will range from $1,000,000 to $2,250,000. Each home will sell for more than $1M to $2M as provided by comparable valuations in the surrounding adjacent community.
● A total of 221,400 square feet for 82 houses. Cost to build the more upscale home will be $185 a sq ft.; 221,400 X $185 a sq ft = $40,959,000.
● The selling price will be $305 a sq ft. X 221,400 = $67,527,000.
● Profit from 82 houses: $67,527,000 — $40,959,000 = $26,568,000 will be the profit.
APARTMENT:
The 84 Units will be surrounded by large upscale single family homes. The Apartment complex can be kept for monthly income, OR there ready buyers for apartments and particularly there is one buyer that is open to buy upon completions. The apartment complex can be sold for 2.7 times the cost to build. In other words, expected profit is 170% on the apartment.
● Cost per apartment unit to build will be $190,000. This includes permits, land preparation and all soft and hard costs. So 84 apartment units X $190,000 = $15,960,000. With landscaping and margin of error the cost may increase as much as $17,000,000.
● Choice to sell the apartment complex for $43,000,000.
● Profit from Apartments: $43M - $15,960,000 = $27,132,000 (adjusted with margin of error $43M - $17M = 26M)
TOTAL PROJECT COSTS:
Total Project Costs around $57MM; $42MM will fund construction of apartment & some lots; and profits from sales for remainder.
PROJECTED PROFIT
Apartment profit = $27,132,000
Housing Profits = $26,568,000
Total �� $53,700,000
* From this profit there will be $1,200,000 spend on the community water park and community club house.
* as Capital Partners may know, Builder/Developer could come in under budget or may go over budget depending on pricing of materials. After factoring in “life”.
Expected profit around $50,000,000.
NOTE: The cost of this project will be approximately $57MM. For Building Approval & Construction for each lot and apartment can commence with approximately $42MM in needed in funding and profits from sales on the apartment and/or lots can be used for remainder of the project.
Capital JV Partner can expect payments of return of capital within 18-24 months with duration of project 36 - 40 months.
Management Team:
Builder Advisor/executive has been in residential developer and building industry/contractor for more than 20 years and COVID supply problems collapsed enterprise. After COVID, in 2022, new enterprise was created with Advisor’s son, also a general contractor and builder, as president/principal of new enterprise.
Return On Investment:
Capital JV partners should expect a 20% of EXPECTED PROFIT.
Amount Needed to Commence: $42,000,000
Minimum Investment: $250,000
Region: Florida
Proposal Summary:
Development of 61 acres. Parcel will be subdivided into 82 houses & a 84 unit apartment with a club house & water park. Total Project Costs around $57MM; $42MM will fund construction of apartment & some lots; and profits from sales for remainder.
RESIDENTIAL LOTS:
The 82 houses will range from $1,000,000 to $2,250,000. Each home will sell for more than $1M to $2M as provided by comparable valuations in the surrounding adjacent community.
● A total of 221,400 square feet for 82 houses. Cost to build the more upscale home will be $185 a sq ft.; 221,400 X $185 a sq ft = $40,959,000.
● The selling price will be $305 a sq ft. X 221,400 = $67,527,000.
● Profit from 82 houses: $67,527,000 — $40,959,000 = $26,568,000 will be the profit.
APARTMENT:
The 84 Units will be surrounded by large upscale single family homes. The Apartment complex can be kept for monthly income, OR there ready buyers for apartments and particularly there is one buyer that is open to buy upon completions. The apartment complex can be sold for 2.7 times the cost to build. In other words, expected profit is 170% on the apartment.
● Cost per apartment unit to build will be $190,000. This includes permits, land preparation and all soft and hard costs. So 84 apartment units X $190,000 = $15,960,000. With landscaping and margin of error the cost may increase as much as $17,000,000.
● Choice to sell the apartment complex for $43,000,000.
● Profit from Apartments: $43M - $15,960,000 = $27,132,000 (adjusted with margin of error $43M - $17M = 26M)
TOTAL PROJECT COSTS:
Total Project Costs around $57MM; $42MM will fund construction of apartment & some lots; and profits from sales for remainder.
PROJECTED PROFIT
Apartment profit = $27,132,000
Housing Profits = $26,568,000
Total �� $53,700,000
* From this profit there will be $1,200,000 spend on the community water park and community club house.
* as Capital Partners may know, Builder/Developer could come in under budget or may go over budget depending on pricing of materials. After factoring in “life”.
Expected profit around $50,000,000.
NOTE: The cost of this project will be approximately $57MM. For Building Approval & Construction for each lot and apartment can commence with approximately $42MM in needed in funding and profits from sales on the apartment and/or lots can be used for remainder of the project.
Capital JV Partner can expect payments of return of capital within 18-24 months with duration of project 36 - 40 months.
Management Team:
Builder Advisor/executive has been in residential developer and building industry/contractor for more than 20 years and COVID supply problems collapsed enterprise. After COVID, in 2022, new enterprise was created with Advisor’s son, also a general contractor and builder, as president/principal of new enterprise.
Return On Investment:
Capital JV partners should expect a 20% of EXPECTED PROFIT.
Amount Needed to Commence: $42,000,000
Minimum Investment: $250,000
Region: Florida
Development: Ten Floor (9 Story + Roof Top Lounge); Mix Use: Retail on Ground and Roof
Proposal Summary:
Development of mixed use property elevator building that will contain 220 residential units on floors two (2) thru nine (9) & 31,098 sq ft of commercial space on floors 1 & 9 with 2 levels below grade (underground parking). The subject is a proposed mixed use property that will contain two hundred twenty (220) residential units on floors. The top level will have an enclosed center courtyard and will include three levels below grade for parking.
Class A suburban product with high end finishes. The unit mix includes studios, one‐bedroom, two‐bedrooms, and three‐bedroom layouts.
Once approximately 25% of the construction complete (after 18 mos. construction), a Hedge Fund has indicated interest financing the remainer of the construction and through operation with Captial JV partner expecting return of capital at that time. Total Construction Duration estimate is 4 years.
GREEN PROJECT: Building will use Geothermal Energy to help power needs. Materials used will have optimization of Solar, Sound, & Light efficiency, as well as disinfecting Ozone & Ceramic technology. URBAN CONSTRUCTION GRANTS are available to lessen construction costs once 25% of construction complete. Available GREEN grants may also help lessen construction costs.
Construction can be commenced once $12MM can be placed in construction reserves.
Management Team:
Developer has 20+ years of commercial experience in proposed urban development area. Property Management Operator will be selected closer to when construction is completed.
Return On Investment:
Developer seeking Capital JV partner to start construction and would be expect return of capital once 25% of construction complete. Equity in the project is expected and commensurate to partnered resources.
Amount Requested$90,000,000 (Note that Construction can be commenced once $12MM can be placed in construction reserves).
Minimum Investment$1,000,000
Region: Northern Mid-West
Proposal Summary:
Development of mixed use property elevator building that will contain 220 residential units on floors two (2) thru nine (9) & 31,098 sq ft of commercial space on floors 1 & 9 with 2 levels below grade (underground parking). The subject is a proposed mixed use property that will contain two hundred twenty (220) residential units on floors. The top level will have an enclosed center courtyard and will include three levels below grade for parking.
Class A suburban product with high end finishes. The unit mix includes studios, one‐bedroom, two‐bedrooms, and three‐bedroom layouts.
Once approximately 25% of the construction complete (after 18 mos. construction), a Hedge Fund has indicated interest financing the remainer of the construction and through operation with Captial JV partner expecting return of capital at that time. Total Construction Duration estimate is 4 years.
GREEN PROJECT: Building will use Geothermal Energy to help power needs. Materials used will have optimization of Solar, Sound, & Light efficiency, as well as disinfecting Ozone & Ceramic technology. URBAN CONSTRUCTION GRANTS are available to lessen construction costs once 25% of construction complete. Available GREEN grants may also help lessen construction costs.
Construction can be commenced once $12MM can be placed in construction reserves.
Management Team:
Developer has 20+ years of commercial experience in proposed urban development area. Property Management Operator will be selected closer to when construction is completed.
Return On Investment:
Developer seeking Capital JV partner to start construction and would be expect return of capital once 25% of construction complete. Equity in the project is expected and commensurate to partnered resources.
Amount Requested$90,000,000 (Note that Construction can be commenced once $12MM can be placed in construction reserves).
Minimum Investment$1,000,000
Region: Northern Mid-West