Opportunity for
Real Estate Investors
One of our clients
is in the process of developing a 264-unit Class-A apartment complex in
Burlington, North Carolina, and has asked us to introduce him and the project to
potential investors.
Total development
cost is budgeted to be $18,920,000. The developer is offering a 75% ownership
in exchange for $3,020,000 in equity. The balance of the development costs will
be funded by a $400,000 equity contribution from the developer, $200,000 from
the general contractor, John S. Clark Company, and a $15,300,000 construction
loan, which we are also arranging. The minimum investment is $302,000.
All cash equity investors will be given a 10% preferred cash return first before splitting the
balance of cash distributions on a 75%-25% basis with the developer and
contractor. After a 24-month construction and rent stabilization period,
projections reflect a 13% cash-on-cash return starting in the third year.
The developer is
entering into the 27th year of a commercial real estate career that has included
experience in almost all aspects of real estate. Most recently he has developed
a 224-unit apartment complex in Fayetteville, North Carolina, and a 184-unit
apartment complex in Greenville, North Carolina. The developer also manages both
complexes.
The site is under
option, the general contractor is ready, the construction loan is being
negotiated and the marketing study is favorable.
If you think you
would have an interest in this opportunity, we will be glad to send you an
Introductory Memorandum that we have prepared. If interest continues, we will
introduce you to the developer and arrange for you to visit the Fayetteville and
Greenville sites.
If you have any
questions or would like an Introductory Memorandum, please call or e-mail Lee
Weddle.
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