This is a smart redevelopment project with the conversion of a former elementary school building into 15 independent living apartment homes, and 4500sqft of mixed use leased space. Additional 6 acres for expansion space as part of phase 2 and 3.
Below are calculations and projections using the existing building and are intended to provide insight to the current and future property value.
Property Valuation Estimates: (using the building only)
Existing Building: 25,000sqft Plus: 6.2 acres
Former Elementary School - Under Contract over 12 Month - Seeking Immediate Backstop Partner for Quick Closing Funding
Purchase Price: $150,000 (25,000sqft building + 6 acres)
Remaining to Close: $100,000
Investor Bridge Loan Request: $225,000
Investor Loan Payback Options:
Option 1 Investor Payback within 9 months: $325,000, with interest only payments of 2%.
Option 2 Investor Payback within 15 months: $410,000, with interest only payment of 2%.
Immediate Stopgap Funding is used to:
1) Close on the Property
2) Prep for Conversion, Sub-Divide
3) 9to 15 Month Pre Sell Marketing Campaign
4) Presell 8 to 10 Units at $175 to $200 per sqft
Estimated Property Value: (Building Only)
As-Is $275,000 to $315,000 (25,000 sqft) ($8 to $12 per sqft)
$450,000 in 90 Days
(25,000 sqft @ $18 per sqft) (stablization and initiating plan offers the as-is value to be closer to $18 to $25 per sqft.
Below are the estimated values based on type of approach.
Phase 2 and 3, including development of the additional 6 acres, offers multiple years of development opportunities with three dozen additonal units.
The redevelopment includes 15 to 18 open floor plan rstudio or one bedroom units. Plus, additional 4,500 sqft of Mixed Use Space and several acres of Flowering Plant Garden Farm.
Calculations as Apartment/Condo Unit:
We use a calculation of valuation at $150 to $200 per square foot each unit. There are 15 units, with up to 18 units.
Gross Income from Sale of 15 Units x 750 sqft x $200 per sqft = $2,250,000
(minus) Acquisition Cost, Redevelopment Cost and Fees = $1,800,000 ($1,650,000 + $150,000, $350,000)
Net Income from Sales of 15 Units = $600,000
CAP RATE: (Gross Income – Expenses = Net Income) / Purchase Price x 100)
Calculations as Monthly Rental Apartment Unit
Monthly Unit Rental: $900
Monthly Gross Income: (15 Units) $13,500
Minus Monthly Operating Expenses: (30%) $4,050
Monthly Net Income: (15 Units) 9,450
Yearly Net Profit: $113,400 (Full Year 1)
Calculations as Retreat Rental/Airbnb Unit:
(15 Units) (Each unit is approximately 750 sqft)
Daily Retreat Unit Rental: $90 per night (Year 1)
Daily Rental Income: $90 x 30 days x 15 Units = $40,500
(minus) Monthly Vacancy Rate: 20% average (Year 1)
Gross Monthly Revenue: $32,400 monthly
(minus) Monthly Operating Expenses: 60% ($24,300)
Gross Monthy Income - Monthly Operating Expenses
Monthly Net Income: (15 Units) $8,100
Yearly Net Profit: $97,200 (Full Year 1)
Immediately Seeking Investor Funding Partners to complete Closing. Buyer has $50,000 paid, and has