*** SOLD OUT ***
Return to Commercial Investments Page
September 20, 2013
15 Shares of $100,000 each (fractional shares available). Currently 10 of 15 shares have been sold. A 2% placement fee is payable to American Full House. We are scheduled to close on the purchase of this asset with funds due by Oct 11. Funds received will be accepted on a first come first serve basis until fully subscribed. If you have any interest in this time-sensitive investment opportunity interested investors should respond immediately.
15,217 SF Class B Office Bank-Foreclosed Condominium Building.
Located in the heart of Dallas/Ft.Worth Metroplex, and 5 miles from DFW Airport.
99 MAIN STREET COLLEYVILLE, TX 76034
Oriented for investors desiring short-term capital gains. The property is being purchased for $1,200,000 ($79/SF) at a current occupancy of 31%. With an additional $60,000 in closing costs and acquisition fees and $240,000 in reserves, the initial acquisition cost basis is estimated at $1,500,000 ($98/SF). A California-based credit union recently received this asset in foreclosure from a Texas-based developer. The seller’s original loan was $2,137,500 ($140/SF) in November 15, 2006. Estimating a 75% loan-to-value this property was valued for approximately $2,850,000 ($187/SF) at construction in 2004.
We are seeking to raise $1,500,000 for the CCI-Colleyville I partnership with 15 limited partnership shares of $100,000, half shares of $50,000 and quarter shares of $25,000. The partnership is structured with an 8% preferred return to investors and a 50/50 LP/GP split of profits above the preferred return.
We are estimating unleveraged asset-level returns in the 13% – 14% range over a 3 year holding period. An investment of $100,000 should return $42,000 in 3 years using conservative estimates .Funds will need to be in no later than Tuesday October 11.
We anticipate aggressively marketing the property through to a stabilized occupancy in the mid-90%, over approximately 18 months. After initially paying cash, CCI could potentially finance 50% of the purchase price and a portion of planned capital expenditures and lease-up costs (tenant improvements and leasing commissions) during the re-leasing phase.
Stabilized cost basis is projected to be $1,800,000 with a stabilized Net Operating Income estimated at $180,000 and disposition market valuation in excess of $2,250,000 ($148/SF). This analysis assumes a rental rate of $14.00 NNN, which our leasing team believes to be extremely competitive for similar office space in the local sub-market. We anticipate strong rental growth (assumed 5% annually during the second and third years) during the holding period.
This Colleyville I investment opportunity is currently accepting funds. We are scheduled to close on the purchase of this asset on October 8, 2013. Due to high investor demand we anticipate this investment to subscribe quickly. Funds received will be accepted on a first come first serve basis until fully subscribed.
If you have any interest in this time-sensitive investment opportunity interested investors should respond immediately.