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Sample Executive Summary
Sample Property Description
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| Sample Executive Summary
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| Overview: |
The developer
is currently under contract to buy this property for $15
million from the REO department of a local institution. |
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| Sponsor: |
Buyer is
a new SPE formed by SmithCo based in Anytown, USA. In
the last 5 years SmithCo has acquired, renovated and resold
7 other similar properties all at a significant profit.
Joe Smith, founder, of SmithCo has a net worth of $4 million
with $1 million in liquid assets. A detailed profile/resume
is provided. |
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| Location: |
Any town,
USA. |
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| Property: |
A 500
unit multifamily property on 42 acres. The property has
modest deferred maintenance needs and is located in a
solid, working class neighborhood close to shopping, employment
centers, places of worship and major bus routes. See detailed
property description. |
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| Financial
Need: |
The buyer
plans to invest $2,250,000 in equity (15%) and seeks a
combination of senior and mezzanine debt for the balance
of the capital structure. Assuming a $15 million purchase
price, net loan proceeds of $12.75 million or 85% of cost
is requested. Sponsor equity will be raised by Joe Smith
using a combination of personal funds and “friends and
family” investors. |
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| Financials: |
The property
is currently being rented at rates below market rents.
After minor rehab, a switch to tenant paid water & sewer
and a steady raise to market rents, the property will
stabilize and offer a significant opportunity to refinance
or sell at a significant profit. |
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| Competitive
Advantages: |
Property
is being purchased at a discount to replacement value.
The highly visible property features easy access to all
areas of the community. The in-fill location is undergoing
revitalization. |
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| Barriers
to Entry: |
It would
be difficult to reproduce a property of this size in this
county in this increasingly hostile, pro environment,
antidevelopment age. |
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| For
More Information: |
Contact
David Repka
of Bison Financial Group, Inc. at 727-289-4400. |
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