Sample Op Zone Development

Unfortunately this project hasn't been funded on time!

PRICE TO BE DETERMINED BY DEAL STRUCTURE- Joint Venture or Equity Partner-

$16MM-$25MM Possible Scenarios

Developer has over 50 years developing 80/20% Tax Credit Deals- Over 4000 in pipeline. Always built to own/hold. Now available to outside investors.

The project sits on a 3.1-acre site at Maple &  Main Street, Hayward, Alameda County, California.

The apartment component will consist of 240 apartment units that include a mixture of studio,one, two and three-bedroom units.

The retail component will be comprised of 5,571 square feet.

The project will include affordable multi-family units. 20% of the multi-family units (or 48 units) will be rented at levels affordable to households earning 50% of AMI levels. The remaining 192 multi-family units will be market-rate units.

The Tax Credits to the owners are valued at $6,930.000.

The affordable units will have restricted rents which are set at well below market rent levels. The rents will be restricted for 30 years from the date of construction

“”The developer has a non-profit general partner as a part of the ownership structure which allows 20% of the value of the residential portion of the property to be exempted from assessment for property taxes.

A new owner would likely apply for this same exemption, which would be granted based on the affordable component and the partnership structure.

We have assumed that this ownership structure and tax reduction benefit will continue with a sale of the property and have assumed that the 

assessment exemption on the residential portion will continue.

PHASE 1

240 apartment units  with 5,500 sf of retail/rental office.

TAKE AWAY

This deal is shovel ready. Demolition started 2 weeks ago. GMAX contract in hand. Reputable builder.

80% Market rate 20% Affordable All inclusive for plans, CD’s, etc.- except building permits-

JOINT VENTURE 

Price guidance $13MM-/+ OR TBD

PURCHASE

Price guidance $18MM-/+or TBD

FINANCING- IRR

Secret sauce IS the financing on this project-  52% IRR -creative -complex = returns are fantastic and not found elsewhere-

PHASE 2- 

Unentitled adjacent parcel – 85 units possible or Medical Building- Currently unentitled but zoned. First right of refusal to buyer of Phase 1

PRICE FOR PHASE 1 & PHASE 2

$24.5MM for everything/ HIGH Barrier to entry region

OFFERS WELCOME-  Deal Structure & PIPELINE Open for discussions and consideration

FULL DILIGENCE TO QUALIFIED INVESTORS

Investment Highlights
  • Stabilized 5% Cap Rate -Phase 1
  • Income Approach Valuation
  • FINANCE SET UP

SPECIAL BOND & TAX CREDITS-
“4% Credits” Tax-exempt bonds.

The construction financing is available from 2 sources ($74M).

Team in place to execute for maximum IRR return

 

 

Cris
$500 - Property Type
scdszc
$99 - Property Type
$2,312 - Property Type
Nalini
$50,000 - Property Type
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$500 - Property Type
Mike
$10 - Property Type
Bojan Lebeau
$64,711 - Property Type
pinco
$50 - Units
Pinco
$500 - Square Footage
No new updates

$118,682
raised of $3,000,000

This project will only be funded if at least $3,000,000 is raised by October 8, 2020
Project sponsor
Equity Apple

Support this project

  • Property Type

    Multifamily, Retail, Office, Mixed

  • Units

    240

  • Stories

    6

  • Class

    A

  • Square Footage

    237,518

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