Investment Proposal for Parrish Road Parcel - “American Dream” Housing Development
Deal Overview: Parrish Road, Cocoa
Is an $18,850,304 million total investment real estate opportunity (see column: High Density/Example High, referring to high density-low rise high finishing units). This Orlando/Space Coast/Central Florida multifamily development is expected to be completed in 2025 and will feature a minimum of? 114 high-quality, entry-level/for-sale multifamily/Lofts units at a more accessible cost (-20,30, 40% below the selected area estimated medium home values) in 10.06 acres in Cocoa, Fl.
A Compelling 13% Return?
The preferred equity position generates roughly 13% or $661,646 over a 2-year term on an initial investment of $5,089,582.
Initial Investment breakdown:
All capital investment accrues and returns are paid at the end of the term. The Trust profits are passed directly to investors rather than reinvested in the fund. For investors purchasing a home (THE RECIPIENTS OF THE AREA), their Investment will be settled in Sq.ft.
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Equity Protection
Preferred equity investments provide stability and consistency of returns to interested investors. A preferred equity investment sits in a protected position in the capital structure and can withstand a market decline of more than 25% before any capital is at risk. We are looking for an experienced equity investor to provide preferred equity and fill capital gaps where banks will not.
We expect equity not to exceed 20% of the cost of the ground-up development, presales to contribute at least 16% of the project’s required capital, and the remaining 80% to come in as debt, in the form of a loan.
Construction and Others Fees (estimates)
Construction fee (7.5% of total construction cost) $1,104,510
“Developers fee” (3.5% of total construction cost) $515,438
Trust Administration All-in trustees fees $294,536
Architects fees (10% of total construction cost) $1,472,680
Brokerage fees (5% of total construction cost) $736,340