Exec Summary - Commercial Real Estate
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Freedom Place Apartments
Investment Overview
Freedom Place is a 100 unit apartment complex is a distinguished gated community located on the Northwest side of Someplace 11 miles from Downtown, in the prestigious Fountains Vista. The property has been poorly managed and severely under capitalized over the last five years. The result is an asset that offers tremendous potential for ABC123 and its Partners to purchase the property substantially below market, renovate the property and re-position the asset in the marketplace. The resulting re-positioning will create an asset that provides cash flow to Partners, substantial growth in equity and considerable benefits of tax deferral.
The investment is conservatively projected to yield the Limited Partners (Members) a return on investment of 11.2% COC with significant opportunities for tax deferred cash flow. ABC123 is seeking accredited investors interested in participating in the project.
Investment Objectives
The property is currently in a deteriorated condition. As a result, occupancy has fallen to around 62% and the profile of the existing tenant base has deteriorated along with the condition of the property. In 2007, gross rent collections averaged $.35 cents per square foot while similar properties in the surrounding area averaged $.75 cents to $.81 cents per square foot. ABC123, together with their management company partner and renovation affiliates, have a proven, three pronged system for the re-positioning of this asset.
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Investment Strategy
The property will be purchased with a bridge loan through Prudential Capital Corporation (Prudential).
Upon close of the purchase escrow, ABC123 will install the new management team and commence with the exterior renovation. In the first month of ownership we will evaluate the existing tenant base and begin the repositioning process. It is projected that occupancy will drop to approximately 33%. This is necessary to
Freedom Place Apartments
Investment Overview
Freedom Place is a 100 unit apartment complex is a distinguished gated community located on the Northwest side of Someplace 11 miles from Downtown, in the prestigious Fountains Vista. The property has been poorly managed and severely under capitalized over the last five years. The result is an asset that offers tremendous potential for ABC123 and its Partners to purchase the property substantially below market, renovate the property and re-position the asset in the marketplace. The resulting re-positioning will create an asset that provides cash flow to Partners, substantial growth in equity and considerable benefits of tax deferral.
The investment is conservatively projected to yield the Limited Partners (Members) a return on investment of 11.2% COC with significant opportunities for tax deferred cash flow. ABC123 is seeking accredited investors interested in participating in the project.
Investment Objectives
The property is currently in a deteriorated condition. As a result, occupancy has fallen to around 62% and the profile of the existing tenant base has deteriorated along with the condition of the property. In 2007, gross rent collections averaged $.35 cents per square foot while similar properties in the surrounding area averaged $.75 cents to $.81 cents per square foot. ABC123, together with their management company partner and renovation affiliates, have a proven, three pronged system for the re-positioning of this asset.
.
Investment Strategy
The property will be purchased with a bridge loan through Prudential Capital Corporation (Prudential).
Upon close of the purchase escrow, ABC123 will install the new management team and commence with the exterior renovation. In the first month of ownership we will evaluate the existing tenant base and begin the repositioning process. It is projected that occupancy will drop to approximately 33%. This is necessary to